TCS ON MOTOR VEHICLE LESS THAN 10 LACS

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  1. whether the provision of TCS will be applicable or not on sale of motor vehicle less than 10 Lacs by cash. ?

    whether motor vehicle covered under definition of "sales of any other goods and services " ?
     
  2. ZED

    ZED Well-Known Member

    It can be applicable if the amount exceeds 200,000.
    Motor vehicle is definitely a good being a movable and marketable item not being a land or a thing attached to a land.

    Extracts from S.206C
    (1F) Every person, being a seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding ten lakh rupees, shall, at the time of receipt of such amount, collect from the buyer, a sum equal to one per cent of the sale consideration as income-tax.


    S.206C
    (1D) Every person, being a seller, who receives any amount in cash as consideration for sale of bullion or jewellery or any other goods (other than bullion or jewellery) or providing any service, shall, at the time of receipt of such amount in cash, collect from the buyer, a sum equal to one per cent of sale consideration as income-tax, if such consideration,—

    (i) for bullion, exceeds two hundred thousand rupees; or

    (ii) for jewellery, exceeds five hundred thousand rupees;
    (iii) for any goods, other than those referred to in clauses (i) and (ii), or any service, exceeds two hundred thousand rupees
     
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