Page 15 - Budget_2020
P. 15
Union Budget 2020
Widening the Scope of TCS on Sale of Goods
TCS is proposed to be collected on sale of goods above Rs. 50 lakhs in a year, provided turnover/gross receipts
of seller exceeds Rs. 10 Crores during preceding FY
• TCS shall be @ 0.1% (1% for non-PAN/Aadhar cases)
• Provisions shall not be applicable if the seller is liable to collect TCS under any other provisions
1st April 2020
It is humbly submitted that both the above provisions require a complete review if not a roll back for the
following reasons:
- LRS remittances are made from post-tax monies and in many cases happens in the names of multiple
family members which is permissible under FEMA, some of whom may be minors or non-tax assesses
- Overseas purchases like capital goods, crude oil and any imports, etc. would squarely fall within the ambit
of TCS and expecting a foreign supplier to manage Indian compliance seem far-fetched.
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