Accountantjee

  With effect from 01-10-2020, the Finance Act, 2020 inserted Sub-Section (1H) in Section 206C. This provision requires a seller to collect tax at source from the amount received as consideration for the sale of goods if it exceeds Rs. 50 lakhs in any previous year. 1.   Who is liable to collect tax on the sale of Goods? Tax is required to be collected by a person carrying on business whose total sales, gross receipts or turnover exceeds Rs. 10 crores in the financial year immediately preceding the financial year of sale. Example, the liability to collect tax in the financial year (FY) 2020-21 arises if the turnover was more than Rs. 10 crores in FY 2019-20. There is no obligation to collect TCS in FY 2020-21 if turnover was less than Rs. 10 crores in FY 2019-20. 2.  From whom tax shall be collected? The tax shall be collected from a buyer if the following conditions are satisfied: (a) There is a sale of goods to such a person; (b) The seller receives any amount as...