TMI BlogApplicability of TCS where the bill amount is exceeding ₹ 2 lakhs and when part of the bill is paid in cash and part through cheque - CBDT clarifiesX X X X Extracts X X X X X X X X Extracts X X X X ..... ion) New Delhi, dated the 24 June, 2016 Subject: Amendment in Section 206C of the Income-tax Act vide Finance Act 2016 - Clarifications regarding. In order to curb the cash economy, Finance Act 2016 has amended section 206C of the Income-tax Act to provide that the seller shall collect tax at the rate of one per cent from the purchaser on sale in cash of certain goods or provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply in cases where the sale consideration received is partly in cash and partly in cheque and the cash receipt is less than two lakh rupees. Answer. : No. Tax collection at source will not be levied if the cash receipt does not exceed two lakh rupees even if the sale consideration exceeds two lakh rupees. Illustration: Goods worth ₹ 5 lakhs is sold for which the consideration amounti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on cash receipt of ₹ 3 lakhs and not on the whole of sales consideration of ₹ 5 lakh. sd/- (Pitambar Das) Director (TPL-III) Copy to:- The Chairman, Members and officers of the CBDT of the rank of Under Secretary and above. OSD to Revenues Secretary. All Principal Commissioners of Income-tax all Director General of Income-tax with the request to bring ..... X X X X Extracts X X X X X X X X Extracts X X X X
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