Forums
Back
I need clear Rules regarding TCS and TDS sections 194 q and 206 (1) H... Honourable Suraj lakhotia sir please clarify me
Direct Taxation
Section 194 Q provision tells us ,payment purchase TDS should deduct when the purchase consideration RS 50 lakhs exceeding.....and also py turnover 10 crores above he is eligible cut TDS Section 206 tax collection at source when seller have more than 10 crore and having sales considerations previous year 50 lacs exceeds he is eligible to collection TCS My Query: Case 1: Mr X (purchaser)having turnover 10 crore more and having purchase consideration exceeding 50 lakhs on previous year , And Mr A having turnover exist 10 crore more and having sales consideration also 50 lakh exceeding..... In this scenario can both parties make TDS deduction and TCS collection??? Case 2: Mr X(purchaser) having turnover below 10 crore and purchase consideration below 50 lakhs ,But Y having (seller ) more than 10 crore turnover and 50 lakh sales considerations So here only seller make TCS only collect?? Please explain this two sections very broadly all scenario please please...
Answers (9)
Best Answer
Sec 194Q - TDS @ 1% (5% if no PAN) on amount exceeding Rs.50 Lakhs (w.e.f 01.07.2021) by buyer at time of payment (including advance) or credit from seller , whose gross turnover > Rs.10 Cr, IF payments more than Rs.50L in the FY Sec 206C(1H) - TCS 1% on amount received exceeding Rs.50 Lakhs.(w.e.f 01.10.2020) by seller at time of receipt of sale proceeds (including advance) from buyer, whose gross turnover > Rs.10Cr. IF receipts more than Rs.50L in the FY First compulsory condition to be met for applicability for 194Q or 206(1H)(c)=> Transaction value < Rs.50L Second compulsory condition to be met for applicability of 194Q => Buyer Turnover > Rs.10Cr. Second compulsory condition to be met for applicability of 206(1H(c) => Seller Turnover > Rs.10Cr
Anirudh gupta
When there is a cross between 194q and 206 c (1h)....194 q shall apply
Which means the seller and buyer having equally 10 crore above turnover and 50 lakhs above consideration......... Only 194 q is applicable ???
Thread Starter
MPR Sanjay KumarWhich means the seller and buyer having equally 10 crore above turnover and 50 lakhs above consideration......... Only 194 q is applicable ???
Refer these screenshots....everything will be clarified
Thread Starter
MPR Sanjay KumarWhich means the seller and buyer having equally 10 crore above turnover and 50 lakhs above consideration......... Only 194 q is applicable ???
The thing is if tax has been deducted even before deduction under 194q then 206 c 1h will apply....otherwise 194 q shall apply
Sudha Reddy
Sec 194Q - TDS @ 1% (5% if no PAN) on amount exceeding Rs.50 Lakhs (w.e.f 01.07.2021) by buyer at time of payment (including advance) or credit from seller , whose gross turnover > Rs.10 Cr, IF payments more than Rs.50L in the FY Sec 206C(1H) - TCS 1% on amount received exceeding Rs.50 Lakhs.(w.e.f 01.10.2020) by seller at time of receipt of sale proceeds (including advance) from buyer, whose gross turnover > Rs.10Cr. IF receipts more than Rs.50L in the FY First compulsory condition to be met for applicability for 194Q or 206(1H)(c)=> Transaction value < Rs.50L Second compulsory condition to be met for applicability of 194Q => Buyer Turnover > Rs.10Cr. Second compulsory condition to be met for applicability of 206(1H(c) => Seller Turnover > Rs.10Cr
Proviso to Sec 206C(1H) clearly states "Provided further that the provisions of this sub-section shall not apply, if the buyer is liable to deduct tax at source under any other provision of this Act on the goods purchased by him from the seller and has deducted such amount." So in your Case 1 - Sec 194Q will be applicable. Case 2 - Sec 206C(1H)
Sudha Reddy
Proviso to Sec 206C(1H) clearly states "Provided further that the provisions of this sub-section shall not apply, if the buyer is liable to deduct tax at source under any other provision of this Act on the goods purchased by him from the seller and has deducted such amount." So in your Case 1 - Sec 194Q will be applicable. Case 2 - Sec 206C(1H)
Thank you very much sir ...always guide me
Sudha Reddy
Proviso to Sec 206C(1H) clearly states "Provided further that the provisions of this sub-section shall not apply, if the buyer is liable to deduct tax at source under any other provision of this Act on the goods purchased by him from the seller and has deducted such amount." So in your Case 1 - Sec 194Q will be applicable. Case 2 - Sec 206C(1H)
Sir in TDS always says exceeds 50,000 means you have to deduct % here exceeds means 50,001 or 50,000 it touched also???? Generally
Thread Starter
MPR Sanjay KumarSir in TDS always says exceeds 50,000 means you have to deduct % here exceeds means 50,001 or 50,000 it touched also???? Generally
when exceeds 50,000 is used, that means only above 50000 If 50,000 or more is used then it starts from 50,000
Your Reply