India expands TCS scope, covers luxury goods over $11,714

26 Apr '25

1 min read

India expands TCS scope, covers wider range of luxury goods over ₹1 mn

Pic: Shutterstock

Insights

India's Central Board of Direct Taxes has expanded the scope of tax collected at source (TCS) to encompass a wider range of luxury goods priced over ₹1 million (~$11,714.03)
This list of luxury goods includes handbags, purses, shoes and sportswear and equipment like golf kits, ski gear.
Sellers are now mandated to collect this 1-per cent TCS from buyers at the time of purchase beginning April 22.

India’s Central Board of Direct Taxes (CBDT) has expanded the scope of tax collected at source (TCS) to encompass a wider range of luxury goods priced over ₹1 million (~$11,714.03). This list of luxury goods includes handbags, purses, shoes and sportswear and equipment like golf kits, ski gear, a CBDT notification said.

CBDT has outlined ten categories that will be subject to the revised TCS rules.

Implemented from April 22, these goods now attract a 1-per cent TCS, a measure intended to improve income traceability and minimise tax evasion.

The TCS collected is later adjusted against the buyer’s total income tax liability when he files tax returns.

Sellers are now mandated to collect this 1-per cent TCS from buyers at the time of purchase and link it to the buyer's permanent account number.

Fibre2Fashion News Desk (DS)

More Apparel/Garments News - India...