Mobile phone and electronics manufacturers have requested the government to extend the date of implementation of tax collection at source (TCS) by six months to April 1, 2021.

In this regard, India Cellular and Electronics Association (ICEA), has written to the ministry of finance (MoF) requesting to defer the implementation of TCS from October 1, 2020 due to reasons, including impact of coronavirus pandemic, lack of clarity in the rules, and clash with e-invoicing roll out from the same day.

According to ICEA, there are several issues related to TCS on which industry needs clarification.  In this regard, the industry body added that industry players are not sure if TCS has to be charged on the value including goods and services tax (GST), its applicability on security deposits, advances etc received from dealers or buyers, treatment in case of sales return and bad debts etc and has sought clarification from the government.