21 Sep 2020

Finance Act 2020 introduced section 206C(1H) of Income-tax Act, 1961 (Act”) in relation to Tax Collected at Source (“TCS”) on sale of any goods w.e.f. 1/10/2020, other than the goods liable to TCS and TDS.


  • If turnover of the seller exceeds INR 10 Crores in preceding financial year.
  • Sale proceeds of goods exceeds INR 50,00,000 during the year to a particular vendor.
  • TCS not applicable on export of goods.


Rate of TCS

Seller is liable to collect TCS at the rate of 0.075%* on the sale consideration received from the buyer in excess of INR 50 Lakhs during the Financial Year.



  • As per press release dated 13th May, 2020 issued by CBDT, rate of TCS has been reduced from 0.1% to 0.075% till 31.03.2021.
  • In the absence of PAN/Aadhaar, TCS shall be applicable @1%

Kind Regards,
Tax Division
T R Chadha & Co LLP
Website: www.trchadha.com


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