Applicability 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 clarifies

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..... e, 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 provision of services exceeding two lakh rupees. Subsequen .....

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..... ash 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 amounting to ₹ 4 lakhs has been received in cheque and ₹ 1 lakh has .....

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