TCS on sale of goods (206C(1H)) removed from 1 April 2025

Budget 2025 omitted TCS on sale of goods under Section 206C(1H) from 1 April 2025, leaving TDS on purchase of goods (194Q) as the single mechanism.

• Section 206C(1H) required sellers with turnover above ₹10 crore to collect 0.1% TCS on receipts above ₹50 lakh from a buyer. It was omitted from 1 April 2025 by the Finance Act, 2025, removing overlap with Section 194Q.
• 194Q (buyer deducts 0.1% TDS on purchases above ₹50 lakh from a seller, where the buyer's turnover exceeded ₹10 crore) continues. Under the 2025 Act it sits in Section 393.
• Other TCS categories (e.g. scrap, specified minerals, motor vehicles above the threshold, LRS/overseas tour packages) continue with their own rules. Under the 2025 Act, TCS provisions are in Section 394.

Remove 206C(1H) auto-TCS settings from sales ledgers/invoicing software for supplies from 1 April 2025.