Tax collected at Source on sale of Goods effective from 01st October 2020
With a view to widening the tax-net, the Indian government (vide the Finance Act, 2020) has extended the scope of Tax Collected at Source (“TCS”) provided under Section 206C of the Income-tax Act, 1961. As per the extended scope, tax is required to be collected at the source on sale of goods by a specified seller (exceeding a specified limit). Such extended scope is applicable from 1 October 2020.
Uniware handles this feature and for this, you need to raise the case on chat support through uniware account.
In uniware,
- TCS visibility in Invoice, Tally report, Sale order report.
- Invoice Print and Invoice Tab of Shipment.
- Dashboard > Invoices tab >Amount Details column
That can be handled channel-wise or bulk customer wise.
Note:
Who is liable to collect TCS?
Seller whose total sales, gross receipt or turnover from the business carried on by him exceeds Rs.10 crores during the financial year immediately preceding financial year in which sale is carried out. It means total turnover of FY 2019-20 of the seller should be more than Rs. 10 crores.
From whom TCS is to be collected ?
TCS is to be collected from the buyer whose aggregate purchases from the seller exceed Rs.50 lacs in the previous year.
On which amount TCS has to be collected?
TCS is required to be collected only on sale consideration exceeding Rs. 50 lacs. In other words, TCS on first Rs.50 lacs is not required to be collected.
What is rate of tax for TCS?
Rate of TCS provided in the section is 0.1% of sale consideration but Vide Press Release dated 13.05.2020 rate of tax has been reduced for the current financial year to 0.075%.