No tax will be collected at source when cash component of the payment for goods and services is less than Rs.2 lakh even if the total consideration is more than this amount.CBDT has issued a new circular on Tax Collected at Source (TCS) clarifying that the levy will not be applicable when cash part of the payment for certain goods or services is less than Rs.2 lakh, even when the total payment is more than this amount.

Source - http://www.thehindu.com