BooksIQ§206C(1H): a SELLER with turnover > ₹10 crore collects TCS @ 0.1% on sale consideration received above ₹50 lakh per buyer (not applicable where the buyer deducts TDS under §194Q; omitted w.e.f. 1-Apr-2025). §206C(1G): TCS on LRS remittances and overseas tour packages @ 20% above ₹7 lakh (5% for education/medical).
Key points
- §206C(1H) — a SELLER whose total turnover exceeded ₹10 CRORE in the preceding FY must COLLECT TCS at 0.1% (1% if the buyer has no PAN) on the SALE CONSIDERATION RECEIVED in excess of ₹50 LAKH from a buyer in a financial year.
- It does NOT apply where the buyer is liable to deduct TDS under §194Q on the same transaction (194Q takes precedence), nor to exports or goods otherwise subject to TCS.
- §206C(1H) is OMITTED with effect from 1 April 2025 (Finance Act 2025), as 194Q overlaps.
- §206C(1G) — TCS on foreign remittances under the LIBERALISED REMITTANCE SCHEME (LRS) and on OVERSEAS TOUR PACKAGES: 20% on amounts exceeding ₹7 LAKH in a FY (w.e.f. 1-Oct-2023);
- 5% for remittances for EDUCATION or MEDICAL treatment above ₹7 lakh, and 0.5% where education is funded by a loan from a financial institution;
- overseas tour packages 5% up to ₹7 lakh and 20% beyond.
- TCS collected is creditable against the buyer's tax liability.
Reference: §§206C(1H), 206C(1G) ITA 1961
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