Newsflash - TDS and TCS provisions applicable from 1 October 2020 including CBDT Clarification dated 29 September 2020

The Finance Act 2020 widened the scope of Section 206C of the Income-tax Act, 1961  which deals with the collection of tax at source to cover within its ambit transactions of foreign remittance through Liberalised Remittance Scheme (LRS), selling of overseas tour package as well as TCS on sale of goods over a limit.

Further, Section 194-O has been introduced in Finance Act 2020, wherein e-commerce operators are now required to deduct tax at source for facilitating any sale of goods or providing services through an e-Commerce participant.

In this Newsflash, we have provided an overview of rate of such TCS and TDS provisions which are applicable w.e.f. 1 October 2020.

Further, the said Newsflash also incorporated the certain important aspects of the Clarifications/Guidelines pertaining to TDS/TCS implications u/s 194-O and 206C of the IT Act, 1961 as issued by the CBDT via Circular No. 17 of 2020 F. No. 370133/22/2020-TPL dated 29 September 2020 (enclosed as Annexure A for easy reference).

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Click here to download Annexure A

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