By: Madhukar PB
September 21 2020
True: If turnover exceeds ten crores, the seller is eligible for Tax Collected at Source.
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The Verdict True
With a turnover reaching ₹ ten crores for the FY, sellers will collect TCS at 0.1 percent from the buyer on the sale of goods that exceeds ₹50 lakhs.
Claim ID 6382e875
With a turnover reaching ₹ ten crores for the FY, sellers will collect TCS at 0.1 percent from the buyer on the sale of goods that exceeds ₹50 lakhs.A new provision introduced under Section 206C (1H) in the Finance Act 2020 allows the seller of any goods whose turnover in a preceding Financial Year(FY) exceeds ₹ ten crores. From October 1, 2020, such sellers shall be liable to collect Tax Collected at Source(TCS) at 0.1 percent of the sale value if the amount of the purchased goods exceeds ₹ 50 lakhs. However, until March 31, 2021, this rate has been reduced to 0.075 percent. The amount of TCS that needs to be collected if PAN or Aadhar card not available would be 1 percent instead of 0.1 percent. The above provisions are not applicable when the buyer is the central Government, a state government, an embassy, a high commission, a consulate, the trade representation of a foreign State, a local authority. Any local authority or class of person notified by the Central Government in the official gazette for the purpose subject to such condition specified in that notification are exempted from paying TCS.