Sunday, 2 February 2020

BUDGET 2020 - TDS/ TCS




TDS/TCS

·         TCS in foreign remittance under LRS exceeding Rs 7 lakh at the rate of 5%. Also on overseas tour package -@ 5%.

·         TDS on e-commerce payment to e commerce participant at the rate of 1%  (194-O limit)
·         TDS on FTS (few cases or other than professional) reduced under section 194J to 2%.
·         TCS at the rate of 0.1% will be applicable on sale of goods if total sales to one person is more than Rs 50 lakhs by a person having turnover of more than Rs 10 crore.
·         TDS on Dividend  is applicable (194 -@ 10%. Limit 5000)  including  foreign shareholder (194LBA-10%, No PAN/ TRC-20%)

·          Section 194C provides for deduction of tax from payment to a resident person for carrying out any “work”. The definition of work has been proposed to be amended to provide that if any product is supplied or manufactured according to requirements of the customer, it shall fall under the category of ‘work’ even if raw material is supplied by the associated enterprise of such customer.

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