Tax collected at Source on sale of Goods effective from 01st October 2020
Due date for filing Annual return
and audit report under GST has been extended, tax payer got some relaxation
however new compliance requirement has been introduced which is applicable from
01st October 2020 i.e. tax to be collected at source on sale of
goods.
Vide Finance Bill, 2020
sub-section (1H) of section 206C of the Income Tax Act has been introduced
which has proposed for tax collection at source (‘TCS’ ,will use it in
remaining part of post), originally it was scheduled to be effective from 01.04.2020
but later has been provided that section will be effective from 01.10.2020.
I am just trying to explain it in frequently asked question (FAQ) format, hope that it will make easy to understand and comply with Law:-