Where transaction value exceeds Rs 50 lakh and buyer's turnover exceeds Rs 10 crores in the earlier year, TDS would apply over TCS. For sale transactions involving motor vehicle, tendu leaves, scrap, etc., TCS continues to apply.

On which amount TCS is applicable?

TDS/TCS will be applicable on amount exceeding of Rs 50 lakh in both sections. For example if purchases Rs 54 lakh, TDS would be applicable on Rs 4 lakh only.

What is new rule of TCS?

WHAT IS THE NEW TDS RULE? The CBDT said the rate of TDS or TCS will be higher for people who have not filed income tax returns for two years. TDS or TCS will be charged at double the rate specified in the relevant provision of the Income Tax Act or 5 per cent.