Tax collection at Source

Effective October 1st, 2020, provisions of Section 206C (1H) of Income Tax Act
1961 come into effect whereby Tax Collection at Source [TCS] will be
applicable on Sale of Goods by applicable vendors. Section 206C(1H) has the
following provision :-

“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 sub-section (1) or
sub-section (1F) or sub-section (1G) shall, at the time of receipt of such amount, collect from
the buyer, a sum equal to 0.1 per cent. of the sale consideration exceeding fifty lakh rupees
as income-tax….:”

In view of the above, the following may please be noted :-

1. Applicable vendors who sell goods to HPCL as per threshold limits shall
comply with the legal requirement.
2. Vendors to note and update HPCL’s PAN: AAACH1118B. Any claim of
higher rate of TCS by virtue of mistakes in updation of HPCL PAN shall
not be entertained.
3. Applicable vendors, in order to collect TCS from HPCL should either claim
the same on the Invoice or claim through separate document
4. Onus of compliance towards collection, remittance to Govt. , filing of
applicable returns and issuance of TCS Certificate to HPCL rests with
vendors.
5. HPCL will pay the TCS amount to the vendor once the same reflects in its
Tax Credit Portal [Form 26AS]