Income Tax - TCS - Cash Sale - Exemption.

By Vijay Kumar

AS per Section 206C(1D) of the Income Tax Act,

(1D) Every person, being a seller, who receives any amount in cash as consideration for sale of bullion or jewellery or any other goods (other than bullion or jewellery) or providing any service, shall, at the time of receipt of such amount in cash, collect from the buyer, a sum equal to one per cent of sale consideration as income-tax, if such consideration,-

(i) for bullion, exceeds two hundred thousand rupees; or

(ii) for jewellery, exceeds five hundred thousand rupees; or

(iii) for any goods, other than those referred to in clauses (i) and (ii), or any service, exceeds two hundred thousand rupees:

Provided that no tax shall be collected at source under this sub-section on any amount on which tax has been deducted by the payer under Chapter XVII-B.

Now, the CBDT has exempted the following classes of buyers from the operation of the above provision.

(i) Government;

(ii) embassies, Consulates, High Commissions, Legation or Commission and trade representation, of a foreign State;

(iii) institutions notified under United Nations (Privileges and Immunities) Act, 1947.

CBDT Notification No. 75/2016; Dated: August 19 2016