As per section 206C(1H) of the Act, every seller, whose total sales, gross receipts or  turnover from the business carried on by him exceed Rs. 10 Crores in the immediately preceding Financial Year (‘FY’) and who receives any amount as consideration for sale of any goods (excluding exports) of the value or aggregate of such value exceeding Rs. 50 Lakhs in any FY shall, at the time of receipt of such amount, collect a sum equal to 0.1% of the sale consideration exceeding Rs. 50 Lakhs as Tax Collected at Source (‘TCS’) from the buyer. However, the said rates of TCS of 0.1% has been reduced by the government to 0.075% for period upto 31 March 2021 taking the pandemic situation into consideration.

The above provision would cast a significant responsibility on the seller of the goods and the attached Newsflash provides an overview of such TCS applicability on the sale of goods w.e.f. 1 October 2020.

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