TAX COLLECTION AT SOURCE ON SALE OF MOTOR VEHICLES, GOODS & SERVICES

TAX COLLECTION AT SOURCE ON SALE OF MOTOR VEHICLES, GOODS & SERVICES

With a view to reduce the cash transactions and to bring high value transactions under tax net, it is proposed to provide for collection of tax at source at the rate of 1%:

-on sale of motor vehicle exceeding Rs.10 lakhs irrespective of the payment mode

-sale of any goods and services over and above Rs. 2 lacs for which payment is being made in cash, however, subject to the following:

– Provision shall not apply to transactions on which TDS is being deducted.

– TCS need not be collected from certain notified buyers

The amendment is effective from 1st June 2016

 

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