The Provisions of Section 206C(1F) are given below :
Section 206C(1F) has been brought to cover all transactions of retail sales and accordingly it will not apply on sale of motor vehicles by manufacturers to dealers/distributors.
The seller shall collect the tax @ 1% from the purchaser on sale of any motor vehicle (and not from purchaser of Luxury Cars only) of the value exceeding Rs.10,00,000.
Section 206C(1F) is applicable to each sale and not to aggregate value of sale made during the year.
Read Also : Section 206C(1G) :”TCS on Foreign Remittance Through Liberalized Remittance Scheme (LRS)
Meaning of “Seller” Under Section 206C(1F):
Seller For Tax Collected at Source (TCS) may any individual or organization authorized under Tax Collected at Source. The following are the list of seller for Tax Collected at Source (TCS)
Company
Statutory Corporation or Authority
Local Authority
State Government
Central Government
Statutory Corporation or Authority
Co-operative Society
Any Individual or Hindu Undivided Family (HUF) defined under the Section 44AB, who has gross receipts or total sales that exceed the specified financial restricts based on the previous year
Partnership Firms
Read Also : TCS on Sale of Goods
Meaning of “Buyer” Under Section 206C(1F);
“Buyer” with respect to—
section 206C(1) means a person who obtains in any sale, by way of auction, tender or any other mode, goods of the nature specified in the Table in sub-section (1) or the right to receive any such goods but does not include,—
a public sector company, the Central Government, a State Government, and an embassy, a High Commission, legation, commission, consulate and the trade representation, of a foreign State and a club; or
a buyer in the retail sale of such goods purchased by him for personal consumption;
“sub-section (1F) means a person who obtains in any sale, goods of the nature specified in the said sub-section, but does not include,—
the Central Government, a State Government and an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign State; or
a local authority as defined in Explanation to clause (20) of section 10; or
a public sector company which is engaged in the business of carrying passengers.”
