FAQ’s on TCS on sales of Goods – Section 206C(1H)

• October 15, 2020
• CA Chandan Agarwal's Office

From October 1, 2020, our Government has introduced a new provision for collecting TCS for the sale of goods and depositing the same to the Government. These provisions are given in Section 206C (1H) of the Income Tax Act.

1. What is Tax Collected at Source (TCS)?

Tax Collected at Source (TCS) is the tax payable by the seller which he collects from the buyer at the time of sale, say, while purchasing a motor vehicle exceeding Rs 10 Lakhs. Budget 2020 has proposed to widen the scope by including TCS on Sale of Goods w.e.f. 01/04/2020—Sec 206(1H).

Read more on: https://taxguru.in/income-tax/faqs-tcs-sales-goods-section-206c1h.html