Jaibalaji Prerna’s

TAX COLLECTION AT SOURCE

Sale of certain The specified percentage for collection of tax at source is as follows:
goods [Section- S.No Nature of Goods (%)
206C(1)] (a) Alcoholic liquor for human consumption/ Scrap/minerals, being 1%
coal or lignite or iron ore
(b) Tendu leaves 5%
(c) Timber obtained under a forest lease or under any other mode 2.5%
(e) Any other forest produce not being timber or tendu leaves 2.5%
Buyer means a person who obtains goods of the specified nature or the right
to receive any such goods but does not include –
(A) a public sector Co., CG , SG, and an embassy, a high commission, legation,
commission, consulate andtrade representation, of a foreign State and
a club, or
(B) A buyer in the retail sale purchased by him for personal consumption
Seller means Any person other than Individual/HUF required to collect TCS,
if last year T/O >1 Cr in case of business or G/R >50 Lakhs in case of
profession.

Non-applicability No TCS if resident buyer furnishes a declaration to seller that “goods” are to be
of TCS [Section utilised for the purpose of manufacturing, processing or producing articles or
206C(1A)] things or for the purposes of generation of power and not for trading purposes.
Sale of a motor Sale of a motor vehicle of the value > ₹10 lakhs (only for Reatil Level Sale),
vehicle of the shall collect tax from the buyer @ 1%.
value exceeding
Note:
₹10 lakhs [Sec- No TCS on sale of motor vehicles by manufacturers to dealers / distributors.
206C(1F)]
Buyer means a person who obtains specified goods, but does not include –
(A) CG, SG and an embassy, a High Commission, legation, commission, consulate
and the trade representation of a foreign State; or
(B) a local authority; or
(C) a public sector company which is engaged in the business of carrying
passengers.
Seller means Any person other than Individual/HUF required to collect TCS,
if last year T/O >1 Cr in case of business or G/R >50 Lakhs in case of
profession.

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 Jaibalaji Prerna’s

Sale of goods of A seller shall collect tax at @0.1% of consideration in excess of ₹ 50lakhs for
value exceeding ₹ the Sale of goods [other than exported goods or goods covered under sub-
50 lakh [Section- sections (1)/(1F)/(1G)]
206C (1H)] Note:
1. If buyer is liable to deduct TDS under any section then TCS not applicable
under this section
2. TCS collected at the time of receiving consideration in excess of ₹ 50Lakhs
Buyer Means: Any person other than
a. CG, SG, an embassy, a High Commission, legation, commission, consulate and
the trade representation of a foreign State, or
b. a local authority; or
c. a person importing goods into India or
d. any other notified person
Seller means: Any person whose last year Turnover > ₹ 10Crore.
Note:Seller does not include a person as notified by CG subject to fulfillment
of conditions stipulated
Lease or a licence Every person who provides the service of leasing or licensing or transferring any
parking lot or toll right or interest in any Parking Lot or Toll Plaza or Mine or Quarry (Other than
plaza or a mine or Mineral oil, Petroleum, Natural Gas) to any person other than Public Co. for the
a quarry [Section- purpose of business shall collect TCS @2%
206C (1C)]
Overseas Every person,
remittance an → being an authorized dealer, who receives amount, under the Liberalised
overseas tour Remittance Scheme (LRS) of the RBI, for overseas remittance from a buyer,
programme package being a person remitting such amount out of India;
[Section- 206C → being a seller of an overseas tour programme package who receives any
(1G)] amount from the buyer who purchases the package
→ shall collect tax by @ 5% of such amount charged
at the time of debiting the amount payable by the buyer or at the time of
receipt of such amount from the said buyer, by any mode, whichever is
earlier.

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Jaibalaji Prerna’s

Any amount received 5% of such amount

from the buyer who charged
purchases an overseas [10% if no PAN
tour programme orAadhar number]
package
Where the amount is The amount or 5% (Amount less ₹7 lakh)
remitted for a purpose aggregate of the [10% if no PAN or
other than purchase of amounts in excess of Aadhar number]
overseas tour ₹ 7 lakhs is remitted
programme package by the buyer in a
financial year

Where the amount the amount or 0.5% (Amount less ₹7

being remitted out of aggregate of the lakh)[5% if no PAN or
loan obtained from any amounts in excess of Aadhar number]
financial institution,for ₹ 7 lakhs is remitted
the purpose of by the buyer in a
pursuing any financial year
education; Amount >7 lakhs
(i) No TCS by the authorized dealer on an amount in respect of which the sum
has been collected by the seller
(ii) No TCS, if the buyer is liable to deduct tax at source under any other
provision of the Act and has deducted such tax
(iii) No TCS, if the buyer is CG, SG, an embassy, a High Commission, a legation,
a commission, a consulate, the trade representation of a foreign State, a local
authority or any other person notified by CG, subject to fulfillment of conditions
stipulated thereunder
Overseas tour programme package
Any tour package which offers visit to a country/(ies) or territory/(ies) outside
India. It includes expenses for travel or hotel stay or boarding or lodging or any
other expenditure of similar nature or in relation thereto. [Clause (ii) of
Explanation to section 206C(1G)]

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 Jaibalaji Prerna’s

Special provision (1) Notwithstanding anything contained in any other provisions of this Act, where
for collection of tax is required to be collected at source under the provisions of Chapter
tax at source for XVII-BB (relating to TCS), on any sum or amount received by a person
non-filers of (hereafter referred to as collectee) from a specified person, the tax shall
income-tax return be collected at the higher of the following two rates, namely:-
[Section 206CCA] (i) at twice the rate specified in the relevant provision of the Act; or
(ii) at the rate of 5%
(2) If the provisions of section 206CC is applicable to a specified person, in
addition to the provisions of this section, the tax shall be collected at higher
of the two rates provided in this section and in section 206CC.
(3) For the purposes of this section “specified person” means
→ a person who has not filed the returns of income for the assessments
years relevant to the previous year immediately preceeding the financial
year in which tax is required to be collected, for which the time limit of
filing return of income under section 139(1) has expired; and
→ the aggregate of tax deducted at source and tax collected at source in his
case is `50,000 or more in said PY
Provided that the specified person shall not include a non resident who does
not have a permanent establishment in India.
Expalnation.- For the purposes of this sub-section, the expression
“permanent establishment” includes a fixed place of business through which
the business of the enterprise is wholly or partly carried on.
Section 206CC: If no PAN/AADHAR, TCS Rate will be higher of the following:
▪ twice the rate specified in above section; and
▪ 5% [1% in case of Section 206C(1H)]
Time limit for
paying tax Person collecting Period within which
collected to the sums in accordance Circumstances such sum should be
credit of CG with section paid to the credit of
[Rule 37CA] 206C(1)/(1C) CG:
(1) An office of the (i) where the tax is on the same day
Government paid without
production of an
income-tax challan
(ii) where tax is paid on or before 7 days
accompanied by an from the end of the
income-tax challan month in which the
collection is made
(2) Collectors other than within one week from
an office of the the last day of the
Government month in which the
collection is made

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