- TCS to be charged by seller on buyer above sales price & GST. It is tax collected & paid on behalf of a buyer
- The purpose of TCS is to track transactions of buyer
- *Primary Condition for seller* – (a) sales of goods worth above Rs. 50 lacs in FY to particular buyer & (b) Business turnover > 10 cr in the earlier year. So applicability of TCS may fluctuate year on year
- Sales of goods from 1.10.2020 to be considered for calculation of 50 lacs in FY 2021
- Exports/imports of goods or transactions with Government organizations are excluded
- Incomplete sales up to 1.10.2020 will also be considered for TCS
- TCS to be collected on a receipt basis @ 0.1% or 1%(if buyer’s PAN or aadhar is not available),
- TCS to be collected on advance payment or performance deposit if adjusted against sale consideration
- The TCS rate for FY 2021 is 0.075%
- In the case of software, the buyer is liable to TDS so the TCS provision will not apply
- Whether the value of 50 lacs includes the GST amount? Debatable as always
- Composite contract – if TDS is deducted no TCS otherwise TCS is applicable
