TCS under Finance Act & impact on E-invoicingThe concept of TCS (Tax Collection at Source) is not new and it has been in force since a long time.
Recently the Finance Act, 2020 has expanded the provision to include sale of goods also under the purview of TCS.
The new provision was earlier made applicable from 1st April 2020, but due to the unfortunate pandemic, it was deferred and now it is applicable with effect from 1st Oct 2020.Simultaneously e-invoicing has also gone LIVE from 1st October 2020 for outward B2B invoices and certain other transactions.
Hence, it becomes imperative to understand the effect of E-Invoicing on TCS transactions.
However, in order to know the impact of this new provision of TCS transaction on e-invoicing let us first understand the provision itself.