TDS u/s 194Q, which was introduced via Finance 2021 has a stark similarity to Section 206C (1H) which was introduced in Finance Act 2020. As per Section 194Q, TDS will be deducted if purchase from a single buyer exceeds Rs. 50 lakh during the current year (Only on amount exceeding 50 lakh). On the other hand, as per Section 206C(1H) TCS will be collected if the sale to a single customer exceeds Rs. 50 lakh during the Current Year (Only on amount exceeding 50 lakh). Let us understand the difference between the two.
|
Basis |
TDS u/s 194Q |
TCS u/s 206C(1H) |
|
W.e.f |
01-July-2021 |
01-Oct-2020 |
|
On whom |
Person having turnover more than 10 crore in Previous Financial Year |
Person having turnover more than 10 crore in Previous Financial Year |
|
Transaction |
On Purchase |
On Sale |
|
From whom |
TDS will be deducted only if Purchase from single buyer exceeds Rs. 50 lakh during the current year (Only on amount exceeding 50 lakh) |
TCS will be Collected only if sale to single Customer exceeds Rs. 50 lakh during current year (Only on amount exceeding 50 lakh) |
|
Rate |
0.1% |
0.1% |
|
Time |
At the time of credit in books or payment whichever is earlier |
At the time of receipt |
|
Time limit to deposit |
7th of the next month |
7th of the next month |
|
Important |
Please note From 01 July, If your customer starts deducting your TDS u/s 194Q, then TCS is not to be collected. Eg.
|
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