Mobile phone players seek extension of TCS rollout until April 1

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

Industry body India Cellular and Electronics Association (ICEA), whose members include Apple, Foxconn, Winstron, Lava etc, has written to the finance minister to defer the implementation of TCS from October 1 due to several reasons, including impact of novel coronavirus pandemic, lack of clarity in the rules, and clash with e-invoicing roll out from the same day.

ICEA Chairman Pankaj Mohindroo said financial year 2020-21 is more or less fully affected by Covid-19 with a sharp drop in revenues, excess cost of operations due to strict implementation of health-related safety measures and low possibility of taxable profit.