TDS and TCS have been a reliable weapon for the Government over the years serving the varied objectives of preventing tax evasion, widening the tax base and ensuring steady revenue collection for the Government. With the same intention of widening and deepening the tax base the Finance Act 2020 has introduced Sec 206C (1H) which imposes a liability on the seller to collect tax(TCS) at source from the buyer of goods. Thereafter the Department had issued FAQ’s in relation to certain points which needed clarification which have been incorporated in the next article.