Sandeep Ahuja & Co.

Established in the year 1986, we are a leading chartered accountancy firm based in Delhi & NCR rendering comprehensive professional services which include statutory audit, internal audit, direct tax, transfer pricing, GST, bank audit, propriety audit, cost accounting, internal financial controls and risk advisory.

Monday, February 13, 2017

Relaxation in TCS u/s 206C to Jewellers where cash sale of Jewellery Exceeding Rs 5, 00,000

Prior to Finance Act, 2017, Jewellers were required to collect TCS as per provisions of Section 206C where Cash sale of jewellery exceeds Rs. 5, 00,000 & for Bullion Rs. 2, 00,000.
Finance Act 2017.
I. Insertion of Section 269ST:  Finance Act, 2017 has inserted Section 269ST, which prohibits cash transactions for sale of goods or services for an amount exceeding Rs. 3, 00,000 w.r.t. any person in   a single day or transaction. 
II. Penalty for Contravention: A penalty of 100% of the amount of  sale shall be levied if proceeds of such sale of goods/services have been received in cash & exceeds Rs. 3,00,000 as per Section 271DA inserted vide Finance Act,2017.
III. Relief for Jewellers wrt. sale of jewellery only: Keeping in view the abovementioned sections, Section 206C has been amended accordingly jewellers will no longer be required to collect TCS on sale of jewellery where sale consideration exceeds Rs.5, 00,000. w.e.f. April 1,2017.

IV. No Relief in case of sale of Bullion: However, Jewellers are still required to collect TCS in case of sale of bullion where sale consideration exceeds Rs. 2, 00,000 as per the provisions of Section 206C since Finance Act 2017 has made amendment only in respect of "Sale of Jewellery" not "Sale of Bullion" by jewellers.

Cntributed by Tanveer Alam CA Finalist at Sandeep Ahuja & co 

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