New Delhi: The Central Board of Direct taxes (CBDT) has issued a circular (No. 17) clarifying the tax deduction at source (TDS) and tax collection at source (TCS) provisions, which will come into force from October 1.
Tax expert Ved Jain said that TCS is to be collected and paid on all payment received on or after October 1, including the amount of GST and also sales made prior to October 1.
The threshold of Rs 50 lakh is year based and hence payments received before October 1 are to be considered. However, applicability shall be on payment received on or after this date.
“Compliance of this new provision is going to be a big challenge for all the taxpayers whose sales in the previous year has exceeded Rs 10 crore,” Jain said.
The CBDT made some clarifications citing the practical difficulties in implementing the provisions of TDS and TCS. The Finance Bill 2020 has introduced a new…