Applicability: - Turnover of seller of goods is more than INR 10 crores in previous financial year;
Time of tax collection: - Tax is to be collected at the time of receipt of sale consideration from buyer. If the receipts exceeds INR 50 lakhs, TCS is to be collect. The limit is per buyer;
Rate of tax collection: - Tax is to be collected at the rate of 0.10% (0.075% up to 31 March 2020); - In case of Non-Pan/ Aadhaar cases, the rate shall be 1%.
Exclusions: - If the amount of sale consideration or the aggregate amount of sale consideration during the financial year received by the seller from a buyer does not exceed INR 50 Lakhs; - If the transaction is already subject to TDS/ TCS, then the provisions are not applicable; - TCS shall not be collected on export sales being made outside India; - Not applicable when the buyer is the Central Government/ State Government/ Local Body;
- TCS is to be collected on sales consideration including GST;
- TCS is to be collected on sale of goods only;
- Threshold Limit - For calculating the threshold limit of ₹ 10 crore in the preceding financial year, the receipts of sale of services shall also be considered.
- The liability to collect TCS will arise even in case of advance payment received though the goods will be physically delivered at a later date.