Provisions of TCS u/s 206C(1G) not applicable to an NRI who is visiting India: CBDT
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Notification No. 20/2022, dated 30-03-2022
Section 206C(1G) provides for the collection of tax at source (TCS) from remittance under Liberalized Remittance Scheme (LRS) and the sale of an overseas tour package. As per this provision, tax is required to be collected by:
a) An authorised dealer who receives an amount for remittance out of India under the Liberalised Remittance Scheme of the Reserve Bank of India; and
b) Seller of an overseas tour program package, who receives any amount from a person who purchases such package.
However, tax shall be collected by the authorised dealer on the amount or aggregate of the amount over Rs. 7 lakh if the remittance is made for any purpose other than the purchase of an overseas tour programme package. If the remittance is made for an overseas tour programme package, the threshold limit of Rs. 7 lakh shall not apply, and tax shall be collected on the total remittance amount.
The section empowers the Central Government to notify a person wherein tax collection shall not be made under this provision.
Exercising such power, the Central Government has notified that provisions of section 206C(1G) shall not apply to an individual who is a non-resident and who is visiting India.
Click Here To Read The Full Notification
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Good morning Everyone. My query is whether TCS U/s 206C(1F) is applicalbe to a NRI who have filed the IT return for last 2 years under USA Govt .As TCS on sale of motor vehicle exceeding Rs 10 lakhs, does not exclude specifically the NRI under the definition of buyer.
There is no exemption available from TCS if the motor vehicle is purchased by a non-resident. The seller is required to collect tax at source under section 206C(1F) at the rate of 1%. If a non-resident doesn’t furnish PAN, Tax collection shall be at the rate of 5%.