In the Budget Announced on 01.02.2020, Honorable Finance Minister had announced an amendment in TCS provision wherein TCS was required to be collected by seller in below situation:
“Every person, being a seller, who receives any amount as consideration for sale of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year, other than the goods covered in sub-section (1) or sub-section (1F) or sub-section (1G) shall, at the time of receipt of such amount, collect from the buyer, a sum equal to 0.1 per cent. of the sale consideration exceeding fifty lakh rupees as income-tax:
Provided that if the buyer has not provided the Permanent Account Number or the Aadhaar number to the seller, then the provisions of clause (ii) of sub-section (1) of section 206CC shall be read as if for the words “five per cent.”, the words “one per cent.” had been substituted:”
After the below amendment everyone was worried about whether one would be required to collect TCS in case of export sales as well and in that case TCS would be required @1% as the importer will not have PAN or Aadhar card and this would increase the cost of the seller.
In response to the above query an amendment was made in the Final budget presented before Lok Sabha on 23.003.2020 wherein the section was amended as below:
“Every person, being a seller, who receives any amount as consideration for sale of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year, other than the goods being exported out of India or goods covered in sub-section (1) or sub-section (1F) or sub-section (1G) shall, at the time of receipt of such amount, collect from the buyer, a sum equal to 0.1 per cent. of the sale consideration exceeding fifty lakh rupees as income-tax:”
Thus, after the above amendment it is clear that now no TCS needs to be collected in case of export sales and export sales won’t be a part of definition of sale mentioned above.
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