TCS Communication FAQ
Ans. TCS is the tax on sale of goods, which is to be levied on customers.
Ans. Electricity is considered as “goods” and that makes AEML a seller of goods(electricity). This tax implementation is applicable to all seller of goods whose annual turnover is exceeding Rs.10 crore. Hence, TCS is applicable to consumers of Adani Electricity Mumbai consumers.
Ans. As per Finance Act,2020 every seller of goods (other than Alcohol, Tendu Leaves, Timber, Forest Produce, Scrap, Coal, Lignite, Iron or a Motor Vehicle), whose turnover from sale of goods exceeds INR 10 Cr. in the preceding financial year, shall be required to collect TCS.
Ans. TCS is levied at the rate of 0.1% (0.075% for FY 2020-21) and is charged to consumers to whom sales after 30th September 2020 exceeds INR 50 lakhs for FY 20-21, on the incremental amount of over Rs.50 lakhs. For example, if a consumers bill is Rs. 58 lakhs between 1st October,2020 and 31st March,2021, he will be charged 0.075% of Rs. 8 lakhs which is Rs.600/- as TCS. In case the consumer does not provide PAN/provides invalid PAN, then a TCS of 1% is applicable on Rs.8 lakhs which is Rs.8000 will be charged as TCS for the year.
Ans. Sale is not calculated at a customer account level but at a PAN level or individual level. For example, customer A with PAN ANP3S8822B has 2 accounts, the combined collection of both these accounts will be considered for the 50-lakh limit for TCS
Ans. No, TCS will be calculated on the electricity consumption charges only, on the gross amount. The TCS amount will be charged in the electricity bill itself. TCS is calculated on Collection amount of energy charges including Government Duty/Tax on Sale and excluding TCS/DPC.
Ans. No, currently there is no provision for refund. Customer can claim refund of this amount or he can set off this amount against other taxes payable while filing his taxes. For this purpose, consumers can obtain a certificate from AEML as a proof for processing the refund or set off. TCS Certificate (FORM 27D) will be issued on quarterly basis to respective consumers.
Ans. PAN should be of the registered customer whose name appears on the bill
Ans. All the registered consumers whose payable amounts exceeds Rs.50 lakh in an FY will automatically fall under the TCS collection net and TCS amount will be debited in the bill. Also, a higher rate of 1% is applicable if PAN is not registered with AEML or is invalid. So, to avoid penalties, registered customer should register the PAN numbers for all the accounts owned by him/her with AEML.