Jamshedpur, Oct 16: The Jamshedpur branch of Institute of Chartered Accountants of India (ICAI) organized a webinar�for its members on the subject Practical Aspects�on Tax Audit and Recent�Amendments�(Direct Taxes). Keynote speaker for the occasion were CA Vivek Khanna from Kanpur and CA Rajesh Mehta from Indore. CA Atul Mehrotra, vice president, Central Zone presided over the meet. Over 250 Chartered Accountants of Jamshedpur benefitted from the webinar.
CA Vivek Khanna said, “Finance Act, 2020 has amended the provisions of section 206C to levy TCS on sale of goods by inserting a sub-section (1H) to section 206C. As a result of the said amendment, a seller who receives any amount as consideration for the sale of any goods of the value or aggregate of such value exceeding Rs. 50 Lakh in any previous year shall at the time of receipt of such amount collect from the buyer, a sum equal to 0.10% of the sale consideration exceeding fifty lakhs as income tax.
The section has been inserted but there is much confusion which has to be clarified by the CBDT. Few clarification was made through guidelines issued on 29.09.2020 but still there are many more which are: this section does not apply on state government and Central Government, the meaning of government entity not given any where like it has been given in GST Act which is making confusion among the assessee.
Another confusion is related to the definition of sales turnover which has not been defined in income tax . The problem is whether to include the amount of GST or not while calculating the turnover.This section has been inserted for sale of goods and again the definition of goods not given in the Income Tax Act. Whether software sale ,prepaid card with talk time , sale of lottery etc will be treated as goods? The clarification required. This section says that TCS will be applicable on receipt basis i.e when the amount realized for sale consideration but does not clarifies the adjustments made between the seller and buyer when sales and purchase is made from the same person and sales consideration is received on a net basis.
The above are few issues which need to be clarified and uptill now no further clarification was given after 29.09.20. Purchase consideration cannot be paid by the buyer in cash as per provisions of section 40A (3) exceeding 10,000.
CA Sugam Saraiwala was the moderator of the session while Chairman CA Sanjay Goyal gave inaugural speech. CA Binod Saraiwala extended the vote of thanks. To make the session successful CA Vikas Agarwal, CA Ramesh Agarwal, CA Kailash Singhania, CA Vivek Agarwal and others provided full support.
