Proposal:
An additional tax of 1% will be collected at source from the buyer on cash purchases of jewellery, bullion, etc, if value exceeds Rs. 2 lakh.
Impact:
While this is intended to track the cash transactions in the jewellery / bullion market, additional tax levy would increase the cost of the purchase and create an administrative burden for the seller.
Budget 2012 - 2013 - Tax Collection at Source (TCS) on cash sale of bullion and jewellery
In order to reduce the quantum of cash transaction in bullion and jewellery sector and for curbing the flow of unaccounted money in the trading system of bullion and jewellery, it is proposed to provide that the seller of bullion and jewellery shall collect tax at the rate of 1% of sale consideration from every buyer of bullion and jewellery if sale consideration exceeds two lakh rupees and the sale is in cash.
This would be irrespective of the fact whether buyer is a manufacturer, trader or purchase is for personal
use. This amendment will take effect from 1st July, 2012.
An additional tax of 1% will be collected at source from the buyer on cash purchases of jewellery, bullion, etc, if value exceeds Rs. 2 lakh.
Impact:
While this is intended to track the cash transactions in the jewellery / bullion market, additional tax levy would increase the cost of the purchase and create an administrative burden for the seller.
Budget 2012 - 2013 - Tax Collection at Source (TCS) on cash sale of bullion and jewellery
In order to reduce the quantum of cash transaction in bullion and jewellery sector and for curbing the flow of unaccounted money in the trading system of bullion and jewellery, it is proposed to provide that the seller of bullion and jewellery shall collect tax at the rate of 1% of sale consideration from every buyer of bullion and jewellery if sale consideration exceeds two lakh rupees and the sale is in cash.
This would be irrespective of the fact whether buyer is a manufacturer, trader or purchase is for personal
use. This amendment will take effect from 1st July, 2012.
No comments:
Post a Comment