1% TCS on money purchase not to apply on international safe havens, UN bodies, Govt


Government division, international safe havens, offices and UN bodies will be among those exempted from the toll of 1 for each penny charge accumulation at source (TCS) on money buys of above Rs 2 lakh, CBDT said today. 

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The legislature has presented 1 for each penny TCS on buy of products and administrations in real money surpassing Rs 2 lakh with impact from June 1. 

The Central Board of Direct Taxes (CBDT) has advised the classes of purchasers on whom the TCS arrangements won't make a difference. 

"The arrangements of sub-segment 1(D) of Section 206C in connection to offer of any merchandise (other than bullion or adornments) or giving any administration should not matter to the accompanying classes of purchasers – Government; international safe havens, Consulates, High Commissions, Legation or Commission and exchange representation of an outside State; and establishments told under United Nations (Privileges and Immunities) Act, 1947," CBDT said. 

Segment 206C (1D) gives that the dealer gather charge at the rate of 1 for every penny from the buyer on special in real money of any merchandise (other than bullion and adornments) or giving of any administrations surpassing Rs 2 lakh. 

As respects bullion and adornments, the Income Tax Department has been demanding 1 for each penny TCS on trade buy of bullion out overabundance of Rs 2 lakh and gems in abundance of Rs 5 lakh since July 1, 2012. 

The Budget 2016-17 had likewise presented 1 for every penny TCS marked down of every single engine vehicle, paying little mind to whether these are extravagance autos or not, that expense over Rs 10 lakh from June 1. 

The duty division had then elucidated the toll won't have any significant bearing to buy of such vehicles by government offices, organizations informed under the UN benefits Act and High Commissions and Embassies.

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