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Whether TDS deduction during the purchase of any goods be on total invoice amount including excise duty or excluding?

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Whether TDS deduction during the purchase of any goods be on total invoice amount including excise duty or excluding?
posted Jun 14, 2017 by Prajwal C.m.

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Recently by finance Act 2016 government has imposed TCS on cash sale of goods or services with effect from 1-6-2016.

Every person, being a seller, who receives any amount in cash as consideration for sale of bullion or jewellery or any other goods (other than bullion or jewellery) or providing any service shall, at the time of receipt of such amount in cash, collect from the buyer, a sum equal to 1% of sale consideration as income-tax, if such consideration, —

(i) for bullion, exceeds Rs 2,00,000or

(ii) for jewellery, exceeds Rs 5,00,000 or

(iii) for any goods, other than those referred to in clauses (i) and (ii), or any service, exceeds Rs 2,00,000

Provided that if any transaction covered under TDS than TCS will not be applicable on it.

Now your question " Whether TCS deduction during the purchase of any goods be on total invoice amount including excise duty or excluding?"
The section has spoken the word Sales Consideration and the word “Sale Consideration” cannot be equated with “Gross Turnover” u/s 44AB , where in refundable taxes are required to be excluded.Therefore TCS to be charged on full amount of sale consideration including all Taxes, Duties, Cess or fee.

answer Jun 14, 2017 by Nway Nadar
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