‘TCS will be an additional compliance burden for assessees’
   Date :15-Oct-2020

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Business Bureau :
With the introduction of Section 206 C(1H) from October 1, 2020, 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 Rs 50 lakh in any previous year, other than the goods being exported out of India will have at the time of receipt of such amount collect from the buyer, a sum equal to 0.1% of the sale consideration (0.075% upto March 31, 2021) exceeding Rs 50 lakh as Tax Collected at Source (TCS) which will be an additional compliance burden on the assesses, said CA Kailash Jogani while addressing a webinar on ‘Fiscal Laws’ organised by COSIA, Vidarbha.
He further said that an obligation to collect TCS triggers on receipt basis will be charged on invoice value including Goods and Services Tax (GST) and to be deposited in Government account by the seller in Challan No 281 before the 7th of next month. Its return need to be filed quarterly and TCS certificate needs to be issued by the seller to the buyer. In case the buyer does not provide PAN details, TCS will be charged @1%, he added. GST expert from Mumbai Advocate Shailesh Sheth deliberated on various issues impacting MSMEs due to GST complexities in this challenging phase of COVID-19.
He said that the MSME sector is a catalyst for growth and if MSME sector flourishes the country can achieve sustainable growth in real terms. And the mantras for survival and revival is flexibility, financial fitness, fastidiousness, frugality, farsightedness and farsightedness. He also deliberated on the burning legal issues concerning GST and elaborated it by discussing various case studies and case laws. At the outset, Chairman of COSIA, Vidarbha Mayank Shukla in his opening remarks said, “Its a continuous endeavour of COSIA to apprise the stakeholders of the latest changes and updates from expert speakers of the country. More participants from around the country are attending the virtual programmes organised by COSIA and taking benefit. Vice Chairman of COSIA CA Julfesh Shah informed the participants that detailed guidelines in FAQ form has been issued by the CBDT on TCS which will be helpful in clearing the doubts.
He also coordinated the webinar and took up the queries of the participants which were resolved by the speakers. Pranav Ambaselkar introduced the speakers and proposed vote of thanks. Sandip Parikh, Vice President of COSIA, Ninad Jaywant, Secretary, COSIA, CA Ashok Chandak, Past President, ICAI, CA Naresh Jakhotia, Treasurer, VIA, Pravin Tapadia, Past President VIA, Shrenik Mehta, Ashok Reddy, Adv Purnima Singh, Ajay Pandey, President ISHRAE, CA Sachin Jajodia, CA Girish Deodhar, CA Damodar Sarda, Subhash Jobanputra, Jyotindra Patel were prominently present in the webinar.