With a view to reduce the cash transactions and to bring high value transactions under tax net, it is proposed to provide for collection of tax at source at the rate of 1%:
-on sale of motor vehicle exceeding Rs.10 lakhs irrespective of the payment mode
-sale of any goods and services over and above Rs. 2 lacs for which payment is being made in cash, however, subject to the following:
– Provision shall not apply to transactions on which TDS is being deducted.
– TCS need not be collected from certain notified buyers
The amendment is effective from 1st June 2016