To whom it's deducted
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TCS to be deducted on sale of goods such as scrap, timber, mineral wood, tendu leaves etc. Section 206C(1H) has also introduced w.e.f 01.10.2020.
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Example
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M/s ABC & Co. makes payment to M/s Ram & Company (Chartered Accountant) for Rs. 100,000, if the rate of TDS is @ 5%. So, M/s. ABC & Co. has to pay Rs. 95,000 to from M/s Ram & Company (i.e. Rs. 1,00,000 after deducting TDS of Rs. 5,000), Deducted amount of TDS should be deposited with in the time framed or under proper section with the government account.
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M/s ABC & Co. sold specified goods to Mr. Ram for Rs. 1,00,000, if the rate of TCS is @ 1%. So, M/s. ABC & Co. has to charged Rs. 1,01,000 from Mr. Ram (i.e. Rs. 1,00,000 on account of sale or Rs. 1,000 on account of TCS), Deducted amount of TCS should be deposited with in the time framed or under proper section with the government account.
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