Prior to Finance Act,
2017, Jewellers were required to collect TCS as per provisions of
Section 206C where Cash sale of jewellery exceeds Rs. 5, 00,000 & for
Bullion Rs. 2, 00,000.
Finance Act 2017.
I. Insertion
of Section 269ST:
Finance Act, 2017 has
inserted Section 269ST, which prohibits cash transactions for sale of goods or
services for an amount exceeding Rs. 3, 00,000 w.r.t. any person in a single day or transaction.
II. Penalty
for Contravention:
A penalty of 100% of the amount of sale
shall be levied if proceeds of such sale of goods/services have been received
in cash & exceeds Rs. 3,00,000 as per Section 271DA inserted vide Finance
Act,2017.
III. Relief
for Jewellers wrt. sale of jewellery only: Keeping
in view the abovementioned sections, Section 206C has been amended accordingly
jewellers will no longer be required to collect TCS on sale of jewellery where
sale consideration exceeds Rs.5, 00,000. w.e.f. April 1,2017.
IV. No
Relief in case of sale of Bullion: However,
Jewellers are still required to collect TCS in case of sale of bullion where
sale consideration exceeds Rs. 2, 00,000 as per the provisions of Section 206C
since Finance Act 2017 has made amendment only in respect of "Sale of Jewellery" not "Sale of Bullion" by jewellers.
Cntributed by Tanveer Alam CA Finalist at Sandeep Ahuja & co
