It is clarified under law that TCS on sales of goods will be collected when actual payment is received by the seller. However to collect TCS on sale of goods, the seller needs to raise sale invoice including the amount of TCS, account in the books as a TCS liability even in actual sense it is not payable.
Credit of TCS during the year has to be claimed in your ITR in a manner similar to that for TDS. To claim the TDS credit in ITR-1 available on the online platform, the details have to be filled in the 'Tax details' section of the form.
Since Government has clarified that TCS amount should be included in 'Others' while generating E-Invoice, taxpayers can take similar call for E-way Bill and GSTR-1 as well. Hence, taxpayers can report TCS amount in 'Other Charges' on E-way Bill and 'Total Invoice Value' in GSTR-1.
The TCS will be collected by a dealer (which is usually a bank) at the time of receipt of the amount for remittance, or at the time of debiting the amount payable, whichever is earlier. TCS will apply only on the amount above Rs. 7 lakh in a financial year, instead of the total amount.
Where transaction value exceeds Rs 50 lakh and buyer's turnover exceeds Rs 10 crores in the earlier year, TDS would apply over TCS. For sale transactions involving motor vehicle, tendu leaves, scrap, etc., TCS continues to apply.
Tax collected at source (TCS) is the tax payable by a seller which he collects from the buyer at the time of sale. Section 206C of the Income-tax act governs the goods on which the seller has to collect tax from the purchasers.
As per finance Act 2020, section 206C (1H) is introduced by government. It states that every person whose turnover in preceding financial year is more than 10 crore and in previous year, consideration received from any customer of more than 50 Lakh, then seller is required to collect TCS at 0.1% from customer.
Tax Collected at Source or TCS -Example
If a buyer is purchasing a car that costs Rs 10.01 lakhs then an amount of Rs 10,010 would be payable as TCS. This amount would need to be submitted to a particular branch of the bank which has been given permission by the government for receiving such payments.
Yes, TCS can be claimed as refund in bank account. In this scenario, in most of the cases, GST liability will always be lower than ITC because the GST on Commission / courier charges of Flipkart, Amazon etc. will be 18%, apart from ITC on purchases, expenses etc.
Registration requirements under TCS provisions of GST
Every person who supplies through an e-commerce operator, except those who make supplies notified under section 9 (5) of CGST Act.
Statement Status and default payable:
Status of TDS / TCS statements filed by a deductor can be checked by the log in Traces. This facility is available only to the registered users.
The taxpayer can pay the demand by clicking the link under 'Pay Tax' option. On choosing 'Demand is partially correct', Enter the 'Amount which is correct' and the 'Amount which is incorrect' will be auto filled.
Advance tax can be paid through tax payment challans at bank branches which are authorised by the Income tax department. It can be deposited in authorised banks such as ICICI Bank, Reserve bank of India, HDFC Bank, Syndicate Bank, Allahabad Bank, State Bank of India and more.
Applicability: Under the Liberalised Remittance Scheme (LRS), the Bank is required to collect TCS at the rate of 5% on the aggregate remittance amount exceeding Rs. 7 lakhs during a Financial Year.
TCS (Tax Collected at Source) is the tax that a seller collects from the buyer during the sale of specific goods under provision 206C, or any other goods on the basis of realisation.
Yes, TCS is to be collected, as the seller create a single invoice, it can be for two different parts of motor vehicle. So even though the individual value do not exceed Rs. Ten Lakhs, but if the invoice amount exceeds Rs. 10,00,000, then TCS is to be collected from customers.
In case the buyer has not any tax liability, then TCS amount will be refunded after filing of Income Tax Return. The TCS collected by the buyer is credited against the PAN of the buyer. Your tax statement 26AS will show it and you can claim credit for it by deducting it from total tax payable for the year.
As per section 206C(7), if the person responsible for collecting tax does not collect the tax or after collecting the tax fails to pay it to the credit of Government within the due date prescribed in this regard, then he shall be liable to pay simple interest at the rate of 1% per month or part thereof on the amount of ...
As per Section 206C(1H), A Seller, Having more than Rs. 10 Crores turnover in preceding financial year, is liable to collect TCS from Buyer on Sale of any goods; if amount received from buyer is crossing Rs. 50 lacs.