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3574318 - Finance Bill 2025: Abolition of TCS under Section 206C(1H)

Symptom

Starting April 1, 2025, the requirement for sellers to collect TCS on goods sales exceeding  ₹50 lakh under Section 206C(1H) is omitted.
This amendment aims to reduce compliance burdens for sellers and eliminate duplication with Section 194Q, which requires buyers to deduct Tax Deducted at Source (TDS) on similar transactions.

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Environment

  • SAP ERP
  • SAP S/4 HANA On-premise
  • SAP S/4 HANA Cloud Private Edition

Product

SAP ERP all versions ; SAP S/4HANA Cloud Private Edition all versions ; SAP S/4HANA all versions

Keywords

TCS, TDS, Section 206C (1H), Section194Q, Amendment, Exemption, Threshold, Compliance, Deduction, Tax, Seller, Buyer, Goods, Sales, Invoice, Finance, IncomeTax, India, FY2025, Update,
abolishment,JTC1,JTC2, union budget, GST , tax collected at source. , KBA , FI-LOC-SD-IN , India (aka XX-CSC-IN-SD) , FI-LOC-MM-IN , India (aka XX-CSC-IN-MM) , FI-LOC-LO-IN , India , How To

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