New Delhi, Oct 1:
Several key direct and indirect tax changes comes into force from today.
These changes are provisions meant to gather data about transactions, spending patterns and fund flow across borders as the tax administration increasingly becomes data and tech-driven.
A 5% tax collected at source (TCS) will be applicable on funds sent abroad, subject to conditions. This will cover any amount sent abroad to buy foreign tour packages as well as every other amount above ₹7 lakh sent abroad unless it is from an income that is already tax-deducted at source (TDS).
E-invoicing has been made applicable from today to businesses with at least ₹500 crore sales. Businesses have to submit sales invoices in a portal designated by GSTN, the company that processes tax returns.
No duty sops for TV parts
A key component used in making television sets—open cell panels—will attract 5% import duty, with the government turning down requests for extending the duty exemption any further.
TCS on sale of goods
Sellers having ₹10 crore revenue in the previous year need to collect income tax at source at the rate of 0.1% on receipt of sale consideration above ₹50 lakh. The tax is applicable to the amount above ₹50 lakh.
TDS on e-commerce
All e-commerce platforms such as Amazon are required to deduct income-tax at source (TDS) at the rate of 1% of the gross amount paid to the sellers who use the platform for sales. The idea is to bring small e-commerce participants into the tax net. The deduction is to be made at the time of payment to the e-commerce participant.