Section 206C requires certain sellers to collect tax at source on sale of goods when turnover crosses prescribed limits — separate from TDS under Section 194Q on purchases.
Seller compliance
- Verify if your turnover triggers 206C(1H) or other sub-sections
- Collect TCS on applicable invoices before receiving payment
- Deposit challan and file quarterly Form 27EQ
- Issue TCS certificate to buyers for credit in their returns
Coordinate with 194Q purchase TDS, small business TDS guide, and TDS return filing.
