ALL VETERANS ARE REQUESTED TO SEE THE WEB SITE & GIVE YOUR VALUABLE COMMENTS/SUGGESTIONSGet this Widget

Tuesday, 28 June 2016

Tax to be levied at Source only if Payment in Cash is above Rs.2 lakh

Prakash Malankar June 28, 2016 News

Tax to be levied at Source only if Payment in Cash – TCS will not be levied if the cash receipt does not exceed Rs. two lakh even if the sale consideration exceeds Rs. two lakh.

No tax will be collected at source when cash component of the payment for goods and services is less than Rs.2 lakh even if the total consideration is more than this amount.

CBDT has issued a new circular on Tax Collected at Source (TCS) clarifying that the levy will not be applicable when cash part of the payment for certain goods or services is less than Rs.2 lakh, even when the total payment is more than this amount. “TCS will not be levied if the cash receipt does not exceed Rs. two lakh even if the sale consideration exceeds Rs. two lakh,” the Central Board of Direct Taxes said.

It illustrated this statement by an example that in a case where a good worth Rs.5 lakh is sold for which the consideration amounting to Rs.4 lakh has been received in cheque and Rs.1 lakh has been received in cash. “As the cash receipt does not exceed Rs.2 lakh, no tax is required to be collected at source as per Sec. 206C (1D),” the Central Board of Direct Taxes said. The circular added that TCS is “required to be collected at source on cash component of the sales consideration and not on the whole of sales consideration“.

The Income Tax Department has been levying 1 per cent TCS on cash purchase of bullion in excess of Rs 2 lakh and jewellery in excess of Rs 5 lakh since July 1, 2012 and there has been no change in that position. However, Finance Minister Arun Jaitley in his Budget 2016-17, had imposed TCS of one per cent on goods and services purchased in cash in excess of Rs 2 lakh.

Source: IE

Blog Archive

Disclaimer

The contents posted on these Web Site are personal reflections of the Viewers and do not reflect the views of the "Indian Military Veterans- Web" Team. Neither the "Indian Military Veterans -Web" nor the individual authors of any material on these Web accept responsibility for any loss or damage caused (including through negligence), which anyone may directly or indirectly suffer arising out of use of or reliance on information contained in or accessed through these Web.
This is not an official Web site. This forum is run by team of ex- Indian Army, Veterans for social networking of Indian Defence Veterans. It is not affiliated to or officially recognized by the MoD or the AHQ, or Government/ State.
The Indian Military Veterans Forum will endeavor to edit/ delete any material which is considered offensive, undesirable and or impinging on national security. The WebTeam is very conscious of potentially questionable content. However, where a content is posted and between posting and removal from the Web in such cases, the act does not reflect either the condoning or endorsing of said material by the Team.
Web Moderator: Capt KS Ramaswamy (Retd)

Resources


JOIN SITE AS MEMBER AS ABOVE & TYPE YOUR E-MAIL ADDRESS HERE FOR AUTO E-MAIL UPDATES