Is Tcs Applicable from 1St October 2020?

TCS on sale of goods applicable from 1 October 2020: Compliances and practical challenges. With a view to widen the tax-net, the Indian government (vide the Finance Act, 2020) has extended the scope of Tax Collected at Source (“TCS”) provided under Section 206C of the Income-tax Act, 1961.

What is the new rule of TCS?

WHAT IS THE NEW TDS RULE? The CBDT said the rate of TDS or TCS will be higher for people who have not filed income tax returns for two years. TDS or TCS will be charged at double the rate specified in the relevant provision of the Income Tax Act or 5 per cent.

On which amount TCS will be applicable?

TDS/TCS will be applicable on amount exceeding of Rs 50 lakh in both sections. For example if purchases Rs 54 lakh, TDS would be applicable on Rs 4 lakh only.