Question ID :
41017
TCS FOR SALE EXCEEDING 50 L DURING FY 20-21
A PVT LTD CO IS FORMED ON 01.06.20 AND THE SALE FOR 20-21 IS 15 CR. UPTO MARCH21. DO WE REQUIRE TO DEDUCT TCS @ 0.075% ON SALE MADE DURING THE FY 20-21 AS SOME OF THE PARTY’S TRANSACTION ARE IN EXCESS OF 50 L. BUT AS BECAUSE THE COMPANY WAS NOT EXISTED DURING FY 19-20 AND SO THE CRITERIA OF TURNOVER EXCEEDING 10 CR DURING FY 19-20 DOES NOT APPLY. PLEASE SUGGEST IF TCS IS REQUIRED OR WE CAN STOP CHARGING TCS IN FY 20-21.
Posted by
pradeep kumar agrawal
on
Apr 06, 2021
Filed Under
TDS/TCS
Answer ID :
81038
The new provisions of TCS have come into force with effect from 1 October 2020 and according to it if your turnover is more than 10 crores in the previous financial year i.e. the year ended 31 March 2020, then this year you will have to collect and deposit TCS on your receipts from sale of goods from such buyers from whom you received more than Rs. 50 Lakhs as sale consideration during the current Financial year. The TCS is payable on the amount of receipt which is greater than 50 Lakhs and received after 1st. Oct. 2020. The rate of TCS is 0.1% and Presently due to corona Pandemic 25% discount has been given in this tax rate till 31 March 2021 and its effective rate is 0.075%.
As per above provision no TDS is required to be deducted
Posted by
GANESH KESHAO NIKAM on
Apr 06, 2021
Answer ID :
81039
The said company is NOT covered under the new TCS provisions in FY 2020-21 since they have no turnover in FY 2019-20.
Posted by
B.CHACKRAPANI WARRIER on
Apr 07, 2021
Answer ID :
81048
TCS is NOT applicable in F.Y. 20-21.
Posted by
SHUBHAM SONI on
Apr 14, 2021
Answer ID :
81056
Yes, TCS is not applicable for the FY 2020-21
Posted by
CA. SATISH CHAND GARG on
Apr 16, 2021
Answer ID :
81068
As the turnover in the FY 2019-20 is NIL. Hence TCS is not applicable in the FY 2020-21.
Posted by
CA. JHA SHANKAR KUMAR on
Apr 25, 2021