Indore: There is anger among the traders over the new provision of Tax Collected at Source (TCS) which says that if any seller of any goods whose turnover in the preceding FY exceeds Rs. 10 Crore then, from 1st of October 2020, he shall be liable to collect TCS @ 0.1% of the sale value from the buyer if the buyer purchase goods for the value exceeding Rs. 50 lakhs.
In other words, till the limit of Rs. 50 lakhs there is no requirement to collect TCS by the seller however the moment purchases of the buyer exceeds Rs. 50 lakhs from the same seller then on such excess amount, the seller shall collect TCS.
What is more, the levy of TCS will be 1% if the buyer doesn’t have PAN number, and it will have to submitted to the Income Tax Department.
Ahilya Chamber of Commerce and Industry (ACCI) has strongly opposed the move. Ramesh Khandelwal, President of the Chamber said that demonetisation, flawed GST and then a long lockdown has broken the backbone of traders, and this new provision will be the proverbial last straw on the camel's back and demanded its withdrawal. They have written to the Union Finance Minister in this regard.
Khandelwal said businessmen have to maintain a lot of paperwork and the new provision will only add to it. It is also against the spirit of Ease of Doing Business. He said the GDP is at its lowest in 50 years and such provisions will only add to lowering of GDP futher.
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