Seller to collect TCS from consideration received from buyer [ Section 206C(1H) ] - Income Tax - Ready Reckoner - Income Tax

Seller to collect TCS from consideration received from buyer Section 206C(1H) [ W.e.f. 01.10.2020 ] Person Responsible for collecting TCS Every person, being a seller, who receives any amount as consideration for sale of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year , other than the goods being exported out of India or goods covered in section 206C(1) /(1F) /(1G) shall, at the time of receipt of such amount, collect from the buyer, a sum equal to 0.1% of the sale consideration exceeding ₹ 50,00,000/- as income-tax. If no PAN provided buyer if the buyer has not provided the Permanent Account Number or the Aadhaar number to the seller, then the provisions of section 206CC(1)(ii) shall be read as if for the words 5% , the words 1% had been substituted. Non-applicability of this sub-section if the buyer is liable to deduct tax at source under any other provision of this Act on the goods purchased by him from the seller and has deducted such amount. Meaning of Buyer and seller for this sub section (a) Buyer means a person who purchases any goods, but does not include , the Central Government, a State Government, an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign State; or a local authority as defined in the Explanation to clause (20) of section 10; or a person importing goods into India or any other person as the Central Government may, by notification in the Official Gazette, specify for this purpose, subject to such conditions as may be specified therein. (b) Seller means a person whose total sales, gross receipts or turnover from the business carried on by him exceed ₹ 10 crore during the financial year immediately preceding the financial year in which the sale of goods is carried out, not being a person as the Central Government may, by notification in the Official Gazette, specify for this purpose, subject to such conditions as may be specified therein. Important Note it is clarified that the buyer and seller would still be liable to deduct/ collect tax as per the provisions of section 194Q and 206C (1H) of the Act, as the case may be. [ Circular No. 20/2021 dated 25.11.2021 ]