This Alcoholic Liquor for Human Consumption is not
applicable for personal consumption.
I know, many students had a doubt that when we go to buy
alcohol at the theka, we have never paid TCS.
Sir, we have not paid TCS because the government says that
TCS provisions are not applicable for personal consumption.
Yes, but if a liquor manufacturer is selling to a
distributor or distributor is selling to a theka vendor, in
that case, TCS provisions will be applicable for the theka
vendor.
It is a simple thing, sir.
These are the things that we have to discourage.
We have to make our India a drug-free nation.
We have to take some drastic steps.
Steps that will increase the collection of taxes.
Those two steps will be worthy of double praise.
Come to the next point.
Tendu leaves.
5% TCS on Tendu leaves.
If I sell you Tendu leaves for Rs.100, I will not charge
you Rs.100.
I will charge you Rs.105.
Rs.5 in the name of TCS, in the name of tax.
Sir, what is Tendu leaves?
What is Tendu leaves?
Have you ever drunk Bidi in your life?
Sir, what are you talking about?
You are talking about alcoholic liquor and Bidi.
Have we taught you to talk about these things?
I am saying that the Bidi that you have seen,
Bidi is wrapped in a leaf.
That leaf is of Tendu leaves.
Look at it.
One minute.
Do you see this figure?
This is called Tendu leaves.
After processing it, the tobacco in the Bidi is wrapped in
this leaf.
Ultimately, this is a bad thing.
Drinking Bidi is bad for the body.
In that case, in the case of leaves, 5% TCS will be applied.
If it is timber,
then 2.5%.
If it is another type of timber, then also 2.5%.
If it is some other forest produce, then also 2.5%.
Scrap.
In the case of scrap, 1% TCS.
1% TCS in the case of scrap.
Sir, what is scrap?
What is scrap?
Basically, there is a factory.
There is production in the factory.
While the production is going on, sometimes it happens that
my machine gets damaged.
I called the engineer and asked him to repair my machine.
He said, this machine cannot be repaired.
It has completed its useful life.
It has only one use, that you sell it in scrap.
Now, the machines that I will sell, or the spare parts that
cannot be used, the spare parts that I will sell in scrap,
on that scrap also,
TCS provisions are applied.
Whoever will buy my scrap, whatever amount he is paying, on
that 1% TCS, definitely, definitely, will definitely pay.
Minerals, iron ore, etc.
In that case, 1%.
Let's see the figure of scrap.
The type of scrap.
You sell scrap.
It is a very common thing in business.
Where the factory is going on, it is very common.
It is a screwdriver, it cannot be used.
You collect it.
It is a scrap worth 1-1.5 lakhs.
It is very common.
In that case, whoever is buying that scrap, that 1% TCS,
will add and pay you.
Am I clear?
These are simple provisions.
There is nothing to worry about.
Let's see what is written in red letters.
TCS is not applicable
If you are buying these goods for personal consumption, or
if you are buying these goods for manufacturing, like
alcoholic liquor, if you are buying it for personal
consumption, if you want to create a personal atmosphere
with your friends, in that case,
TCS is not applicable.
When you play high-level games, the government applies TCS.
If a distributor is selling to a contractor, if a
manufacturer is selling to a distributor, in that case,
TCS is not applicable.
In that case,
TCS provisions are applied.
This is the point.
These TCS provisions are not applicable if the goods you
are buying are from a government embassy, a government
department, or a high commission.
A buyer, what does TCS provision say?
When a person is buying goods, when he is paying, this is
the provision, will the government ever cause a loss?
Will the government ever cause a loss?
I am paying you,
I am the government,
I am paying you, so I will pay a little extra.
The government will cause a loss to others, it will never
cause a loss to itself.
That is why, this point came out very cleverly, that
government embassies, consulates, high commissions, no
provisions of TCS are applicable to the government.
No provisions of TCS are applicable to the government.
If you are buying something for personal consumption, it is
not applicable.
If you are buying something for manufacturing, even in that
case,
TCS is not applicable.
For example, the scrap you are buying, it is a scrap for
the seller, but for you, you can make a good machine out of
it.
Or you can use the scrap for manufacturing.
It is possible.
It is a scrap, but for you, it is a good raw material.
Even in that case, because you are using the goods for
manufacturing, the provisions of TCS are not applicable to
you.
This was the point.
And these are our rates.
Look at it in 30 seconds, and then we will move ahead.
Tendu leaves, which are used to make Bidi.
Timber, in that case, it is 2.5%.
Scrap, minerals, etc.
1% TCS.
Okay? Let's move ahead.
The second point is, where TCS is applicable, lease or
license of a parking lot, toll plaza, mines, quarry.
What did I say?
What I am trying to say is, for example,
I own a big real estate company.
I am a big real estate baron.
I had a plot of 5000 gaj, for example.
I had a plot of 5000 gaj.
I said, what should I do with this plot?
I thought a lot about it.
In that case, look, it was in an urban area.
It was a residential colony.
In that colony, there was a plot of 5000 gaj.
I could not do farming on that plot.
Because there should be land for farming as well.
I cannot do farming.
I saw the problems around.
I said, parking is a big problem.
If you go to any city, the problem of parking is a very big
problem.
People do not have proper space to park their vehicles.
Vehicles are being sold but there is no space for parking.
People take degrees and study but there is no job.
Vehicles are being sold but there is no space for parking.
I thought there is a problem.
To solve this problem,
I put up a board outside the plot.
If anyone wants this plot on rent, they can take it from me.
I made it as a parking lot and I gave the parking lot on
rent.
I gave the parking lot on rent.
The person
I will take the rent from, that person who will give me the
rent, will add the TCS.
This is the provision.
On the parking lot, whatever money you receive, you give it
on rent.
You did not sell it.
You gave it on lease.
I gave it on rent.
Ultimately, I am giving it on rent.
I am not selling it.
I gave it on lease.
This is the parking lot.
This is my parking lot.
All the vehicles are parked here.
I went upstairs and clicked a photo.
Why are you having fun?
The vehicles are parked here.
This is a person.
This is a toll plaza.
Do you receive any rent from the toll plaza?
Generally, companies make a toll.
Whatever money you receive, on rent, you give it on TCS.
What are mines and quarry?
Have you seen the KGF movie?
Rocky Bhai's movie.
Salute to Rocky Bhai.
KGF.
gold mines, coal mines, marble mines, granite mines, gold
and silver mines, all these mines are with the government.
Mostly these mines are with the government.
If someone has to do any production or take out the gold
from there, then that mine has to be taken on rent from the
government.
Whoever will take that mine on rent from the government,
will make a payment to the government for the rent and will
add TCS to that payment and give it to the government.
These mines, I don't know what is shown in the movie in
KGF, all these mines are government owned mines.
If you think about it, if these mines are made private,
there will be a massacre in the whole of India.
The most powerful person will make his 1,500 to 2,000
people sit with guns and say, this mine is mine from today.
You think about it.
Don't believe in such movies.
Believe in the actual things.
Like this mine, it is such a big mine, the government gives
it on rent.
1 year lease, 5 year lease, 10 year lease.
Whatever lease payment you will do on that, add TCS and
make the payment.
What does the section say? Section 206C1C says, provides
for collection of tax by every person who grants a lease or
enters into a contract in any parking lot or toll plaza or
mines to another person other than the government company
for the use of such parking lot for the purpose of business.
This is the simple point.
And what will be its rate?
Tax shall be collected at the rate of 2%.
2% of TCS rate will be there.
This is our point.
Is this point clear? 2 sections of TCS are still there.
One is of alcoholic liquor and the other is of mines.
In that, the rates are 1%, 2.5%, 5%.
What was the rate here?
Here the rate was 2%.
Is this point clear? Shall I move ahead? Shall I move
ahead? Come sir.
Next is, sale of motor vehicle of the value exceeding 10
lakh rupees.
Sir, today's time has come, what should I tell you? If you
like any car properly, I am talking about a proper car.
I am not talking about a small car.
Sir, if you like a proper car, I can guarantee that the
price of that car will be at least 17-18 lakh rupees.
I am not talking about Mercedes or any such type of car.
When you see a car on the road and it is a tall car, like a
Harrier or a Scorpio, it is a car of 17-18 lakh rupees.
And people are buying
such cars.
Purchasing power, purchasing capacity of people has
increased a lot in today's time.
Which era are you living in? You think that you will get a
job of 20-25 thousand rupees.
Sir, people are paying EMI of more than this.
People are paying EMI of 50-60 thousand rupees on cars.
As much as you are thinking that you will get a salary of
this much.
People are paying EMI of double that.
And this is not possible in jobs.
Let me
tell you that all this is possible only through business.
You will never be able to afford so much in a job.
Yes, if you reach a certain level, it is a different matter.
But all these things can be afforded only through business.
The number of cars that are being sold, look at the price.
Such an expensive car.
I remember, it was the year 2000.
I think you were not even born in the year 2000.
I was also very young at that time.
My father bought the very first car in our house.
It was a shiny silver colored Sentro car.
It was the oldest and the first model of Sentro car.
And on the road, you could see only one Sentro.
It was a very good car.
I remember, he bought that car for 2.5 lakh rupees.
And 2.5 lakh rupees was such a big amount in the year 2000.
What did he buy? In today's rate, if you buy a car for 2.5
lakh rupees, it does not cost a lot of money.
He always says that it should be a big car.
I said, let's buy a Scorpio.
The new one has come, Scorpio Classic
N. I am planning to buy it.
I go to the showroom.
Sir, the price of the car starts from 15 lakhs.
The price of the car starts from 15 lakhs.
The government knows that the purchasing power of these
people is slowly increasing.
And the government is so cunning that wherever the goods
can be stolen, the money can be earned, the provision of
TCS will be added there itself.
If someone is buying a car worth more than 10 lakhs, it
seems that he is a good person.
He earns good money.
Why not put a provision of TCS on him? Sir, the government
said that if there is any car worth more than 10 lakhs, if
you go to buy it, then you will
have to add 1% TCS and make the payment.
You don't believe me.
Do one thing.
Go to the
showroom of any car near your house.
Look for a big car, not a small car.
Look for a big car.
What is the big car? If a big car is averaging 30 lakh not
30 lakh? So, how will
you make money? With what is the process? Do you have any
idea? Is it like playing with fire? Why are you not putting
a provision of not affecting the cost? then you can afford
a 1% TCS.
This is the point.
What does it say?
Provides that every person being a seller, seller receives
any amount, for the sale of motor vehicle, exceeding 10
lakh, shall collect tax from the buyer at the rate of 1%.
And this section, what does it say? It covers retail sales.
Retail sales.
If you and I go to buy a car, if we feel like,
I feel like at Scorpio Classic N, sorry, at Scorpio N,
Classic is old, at Scorpio N, even if I don't want it,
I have to pay 1% TCS.
It covers retail sales.
Only retail sales.
If the manufacturer is supplying the car to the dealer, in
that case, no provision of TCS is applied.
Look at the discrimination the government has done.
You and I go to buy a car, the car is worth more than 10
lakhs, is this our level?
Do we like this type of car? We have to pay TCS.
But the Mahindra company at Scorpio, the manufacturer of
Mahindra, the Mahindra distributor, the car dealer, if they
supply the car, the car dealer who buys the car from
Mahindra, does not have to pay TCS.
This is the point.
I will stop the lecture here.
We have covered three topics.
The first one we covered was,
Tendu leaves for alcoholics.
The second one we covered was, parking lot, 2%, and the
third one was car.
If you make a payment, add a little extra TCS and make the
payment.
This is the point.
We will meet in the next lecture, we will finish this topic.
Thank you very much.