TCS(Tax Collection at Source)

TCS(Tax Collection at Source)

This is an important communication regarding “TCS on Sales & Purchase” applicability .

Section 206C(1H) of Income Tax Act:

This is to bring to you notice that there is a regulation change under Income Tax Act,1961 under Section 206C(1H) [TCS on Sales and Purchase] with effect from 1st Oct’2020. Under the change any Seller of goods whose total sales, gross receipts or turnover from the business exceeds INR 10 crores in the previous financial year is liable to collect TCS @ 0.1%* at the time of receipt of consideration over and above Rs.50 Lakhs from the Buyer.

Dabur for simplification will collect the TCS from all the invoices raised to eligible Dealers i.e having turnover exceeding Rs. 50 Lakhs w. e. f 1st October 2020. We will provide quarterly certificate to Dealers basis which you will be able to set off the Income tax credit for all the TCS collected while filing quarterly returns.

Please note:-

• TCS regulation requires us to collect @ 0.075% for FY 20-21 and thereafter @ 0.1% on Invoice Value for FY 2021-22.

• If there is no PAN /Aadhar that is maintained with us, TCS will be collected @ 1% at the time of Primary Invoicing. We are intimating through our sales team those stockists.

• TCS will not be applicable for Sales Return, Shortage/Damages, Debit or Credit Note Adjustment.

• TCS certificate will be provided on quarterly basis; PDF will be made available and will be send via email. The certificate will also be accessible in the Income tax portal TRACES – Form 26A

• Below is the sample pricing structure from us to your firm for reference.

Price Structure	Amount(Rs.)
Basic Price	100,000
GST@18%	18,000
Total Invoice Value	118,000
TCS@0.10%	118
Total Amount Payable by Customer	118,118