^®
TaxReply India Private Limited

Login     GST Library Tour

TaxReply India Pvt Ltd

🔒

Join on twitter

Join GST Group 121

Desktop
Tablet
Mobile

Regarding new TCS provisions

I have a query related to new TCS provisions in respect of Sale of Motor Car exceeding Rs 10 Lacs in cash or any other mode. What if we sell car partly in cash and partly through cheque like we say we received Rs 2 Lac or more in cash and rest through cheque but the total consideration is below 10 lacs .Is it mandatory to deduct TCS 1% on the cash consideration.

Dear Mr. Ashish,

No, Section 206C(1F) is not applicable if total consideration of sale of Motor Vehicle does not exceed ten lakh rupees. Therefore TCS @ 1% is not applicable on this transaction.

Pl feel free to revert for any further clarification.

Kind Regards
Mohit Jain
9582757578

Thanks Mr Mohit Jain But their is one another clause in that section that if we sell any goods or serives exceeding rs 2 lacs in cash than we have to deduct TCS @ 1% .

Yes, but Section 206C(1D) is a general section for all goods and services however section 206C(1F) is specific to Motor Vehicle only. Therefore in my opinion, section 206C(1F) should prevail over 1D.

Pl share your views on the same.

Kind Regards
Mohit Jain

Yes Mohit ji i am agree with you.

Dear Mr. Ashish,

To the contrary of our opinion, Income Tax Department has issued a circular covering your query also.

As per department, TCS will be applicable @ 1% u/s 206C(1D) if a motor vehicle is sold for less than 10 Lakh and payment is received in cash for Rs.2 Lakh or more. Please note that TCS @ 1% shall be collected only on CASH Portion u/s 206C(1D) and not on the total amount.

Therefore we withdraw our earlier opinion given in this regard.

Kind Regards
Mohit Jain.

The client had purchased LIP of Rs. 5 lakh in 2006 and paid Rs. 2.50 lakh in 2006 and Rs. 2.50 lakh in 2007. Now in 2016 received the maturity amount of Rs. 732000/- and on that Rs. 7320/- has been deducted TDS. Now the question is:

What is the treatment of the maturity amount? Whether Rs. 232000/- is taxable ? if yes then under what head? if not then Why?

OR Rs. 732000/- is taxable? if yes under what head? if not then Why?

Option A: In case the claim upto 20% of LIP has been calimed u/s 80C (since premium upto 20% was allowable).

Option B: In case no rebate has been claimed u/s 80C and this was purely as investment?

27
Apr

GST Calendar GST Diary
2021 2022 2023 2024	January February March April May June July August September October November December

S

M

T

W

T

F

S

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

28 Apr

30 Apr