TCS on vehicles

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  1. Saurabh G Jain

    Saurabh G Jain New Member

    We are dealer of vehicles.In case of sale of vehicles exceeding Rs 10,00,000/-. then we shall have to deduct the TCS @1% but if buyer doesnot have PAN no then at which rate TCS would be collected?
    Whether it is 20% or 1% ?
  2. ZED

    ZED Well-Known Member

    As per Rule 114B, it is mandatory to furnish PAN in case assessee wishes to buy motor vehicle (irrespective of its amount).

    In case of TCS (which falls under Chapter XVIIBB) ,as such there is no mechanism to charge 20% if PAN has not been submitted. Therefore the rate shall be 1% only.

    206AA. (1) Notwithstanding anything contained in any other provisions of this Act, any person entitled to receive any sum or income or amount, on which tax is deductible under Chapter XVIIB (hereafter referred to as deductee) shall furnish his Permanent Account Number to the person responsible for deducting such tax (hereafter referred to as deductor), failing which tax shall be deducted at the higher of the following rates, namely:—

    (i) at the rate specified in the relevant provision of this Act; or

    (ii) at the rate or rates in force; or

    (iii) at the rate of twenty per cent.

    (2) No declaration under sub-section (1) or sub-section (1A) or sub-section (1C) of section 197A shall be valid unless the person furnishes his Permanent Account Number in such declaration.

    (3) In case any declaration becomes invalid under sub-section (2), the deductor shall deduct the tax at source in accordance with the provisions of sub-section (1).

    (4) No certificate under section 197 shall be granted unless the application made under that section contains the Permanent Account Number of the applicant.

    (5) The deductee shall furnish his Permanent Account Number to the deductor and both shall indicate the same in all the correspondence, bills, vouchers and other documents which are sent to each other.

    (6) Where the Permanent Account Number provided to the deductor is invalid or does not belong to the deductee, it shall be deemed that the deductee has not furnished his Permanent Account Number to the deductor and the provisions of sub-section (1) shall apply accordingly.

    (7) The provisions of this section shall not apply to a non-resident, not being a company, or to a foreign company, in respect of—

    (i) payment of interest on long-term bonds as referred to in section 194LC; and

    (ii) any other payment subject to such conditions as may be prescribed.
  3. reenawani

    reenawani New Member

    Thanks for your guidance regarding such an important document. we can simply get our vehicle by pan card by follow instruction provided by you in this post and know your pan card detail after getting it.
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