TL;DR for CAs
- Sellers with turnover above Rs. 10 crore may collect TCS on receipts from sale of goods.
- Threshold of Rs. 50 lakh per buyer applies.
- Yields to 194Q when buyer is liable to deduct TDS.
What it is
Section 206C(1H) requires collection of TCS by specified sellers on consideration received from sale of goods.
Who it applies to
Sellers with turnover above Rs. 10 crore in the preceding FY.
Key provisions
- 0.1% rate (1% without PAN)
- Receipt-based trigger
- Exclusion where 194Q applies
Practical tips for CAs
Coordinate buyer-seller communication to avoid double deduction/collection.
Common mistakes
Collecting TCS despite 194Q; applying on exempt goods incorrectly.
For general guidance only. Verify with the latest Finance Act, GST notifications, and ICAI guidance notes before advising clients.