Rate of TCS on Cash sales if Buyer PAN not available

By | June 4, 2016

 TCS on Cash sales if Buyer PAN not available

TCS on Cash sales

Finance Act, 2016 imposed TCS on cash Sales i.e on cash sale of goods or services  with effect from 1-6-2016. Finance Act 2016 has made the amendments in section 206C( 1D) of the Act :

TCS on Cash sales i.e on cash sale of goods or services @  1% of sale consideration to be collected by seller from buyer on

  • Sale of Bullion (if sale consideration is more than Rs 2 Lakh in single bill )
  • Sale of Jewellery (if sale consideration is more than Rs 5 Lakh in single bill )
  • Other goods or services (if sale consideration is more than Rs 2 Lakh in single bill)

Note : Seller means “the Central Government, a State Government or any local authority or corporation or authority established by or under a Central, State or Provincial Act, or any company or firm or co-operative society and also includes an individual or a Hindu undivided family whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which the goods are sold or services  are provided.

Rate of TCS on Cash sales if Buyer PAN not available

Seller/service provider is required to take PAN of the purchaser/recipient of service.The person raising bill shall ensure after verification that PAN has been correctly furnished and mentioned in the bill. Even if no PAN is provided by the Purchaser, TCS @ 1% to be collected .

(Note : Section 206AA ,the Provisions of non furnishing of PAN and deduction of TDS @ 20% are applicable for Chapter XVIIB but Section 206(1d) is covered in Chapter XVIIBB)

Period during which TCS on Cash sales is to be depoisted

TCS on Cash sales i.e on cash sale of goods or services collected from buyer shall be deposited within 7 days from the close of month of collection to the credit of the Central Governmen

 TCS on Cash sales if Buyer PAN not available : Form No 60 to be taken

A declaration in Form No. 60 should be taken from the purchaser/recipient of service in case PAN is not available.

TCS on Cash sales if Buyer PAN not available :Period for which Form No 60 to be retained

Seller is required to retain Form No. 60 for a period of 6 years from the end of the financial year in which the transaction is undertaken.

Procedure in case TCS on Cash sales is collected and Form no 60 is taken ( If Buyer PAN not available)

  • Form 61 statement (giving details of all Form 60 obtained in a Half Year), is required to furnished electronically by seller (only where audit of seller is required  u/s 44AB -including audit for presumptive taxation)
    •  For declarations received till 31st March :- Form 61 is required to be filed by 30th April and
    •  For declarations received till 31st October : Form 61 is required to be filed by 30th September.

Latest Books on TDS/TCS


Download Form 60 :-

Download Form 61 Declaration Format

 

Procedure in case TCS on Cash sales is collected and Buyer PAN is available

  • Seller shall submit Quarterly statement in Form 27EQ within following due dates

Quarter of the financial year ended       Due Date

30th June                                                              15th July of the financial year

30th September                                                    15th October of the financial year

31st December                                                       15th January of the financial year

31st March                                                               15th May of the financial year

                                                                                      immediately following the financial                                                                                                       year in which collection is made

  • The seller will furnish certificate to the buyer in Form 27D by following due date stating that tax has been collected, and specifying the sum so collected, the rate at which the tax has been collected..

Quarter of the financial year ended      Due date

30th June                                                 30th July of the financial year

30th September                                       30th October of the financial year

31st December                                          30th January of the financial year

31st March                                                30th May of the financial year immediately following the

                                                                    financial year in which collection is made

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