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 . Read Higher Tax Rate for not giving PAN by Collectee for TCS w.e.f 01.04.2017
(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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