Leviable TCS Under New Provision Accepts Complete Sales with GST

Central board of direct taxes CBDT has announced that on the sales of items and services valued over 50 lakh annually will be considered with compensation including GST which is currently charged with 0.1 % TCS.

On the TCS returns the Income-tax department TGet to know about new TCS (Tax Collected at Source) rules under income tax provisions. The new tax provisions will be applicable from 1st October 2020. Read more said that no adjustment will be needed on the sale returns, discounts or the indirect tax along with GST in collecting the TCS. The fresh TCS will come into force on October 1, 2020.

Apart from this, the government is also going to apply Tax deducted at source TDS with 1 % on every transaction from e-commerce operators to the members registering from October 1, 2020. 

On Tuesday the income tax department also stated that from October 1 two taxes came into effect the two applications were based on the sales and the payments in the before the year and thus the threshold will be estimated from April 1, 2020. Thus if the seller sold goods worth around Rs 50 lakh till September 30, 2020, then 0.1% TCS will be charged from October 1.

Some discussions will have to be made so for the continuity in business processes and the taxpayer have only one day as the act comes into force. 

In the survey of EY and SAP, it was found that corporate India is to be served with the deal with several taxes of TCS. 

There will be two transactions that the payments do for e-commerce one is when the buyers do payments via payment gateway. The department says that TDS will be deducted either for the payment gateway or for the e-commerce platform.