EN 
If you are a seller whose turnover or gross receipts in previous financial year exceeds INR 10 Crore then effective 1 October 2020, a recently introduced section 206C(1H) regarding TCS (Tax Collected Source) becomes applicable on you.
Finance Act 2020 introduced section 206C(1H) which provides the seller of goods whose gross receipts or turnover in the preceding FY (FY 2019-20 in this case) exceeds INR 10 Crore is liable to collect TCS @ 0.1% (0.075% during the period 01-10-2020 to 31-03-2021 as a covid relief measure) from the parties to whom the sale of goods exceeds INR 50 Lakhs in the current financial year (FY 2020-21 in this case). Below goods shall not be considered for this section-
However, in the case of no PAN or Aadhar of the customer, the TCS rate shall be 1%.
Please refer below a tabular explanation of the section-
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Particulars
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206C(1H)
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206C(1H)
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Turnover or Gross Receipts in FY 19-20 > INR 10 Cr.
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Yes
206C(1H) Applicable
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No
206C(1H) NOT Applicable
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Sale to any party in FY 20-21 > INR 50 Lakhs
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Yes
TCS to be collected
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No
TCS NOT to be collected
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TCS Rate
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PAN / Aadhar Available
0.075%
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PAN / Aadhar NOT Available
1%
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Goods sold to Central Govt, State Govt, Embassy, High Commission, Legation, Commission, Consulate, Local Authority or any person the Central Govt has authorised
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Not Applicable
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Not Applicable
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