Regarding TDS Apllicability u/s 194Q

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This discussion clarifies the applicability of Tax Deducted at Source (TDS) under section 194Q on brass scrap. It addresses whether a buyer must deduct TDS if the seller has failed to collect Tax Collected at Source (TCS) under section 206CE. The consensus is that if the seller does not collect TCS, the buyer remains liable to deduct TDS under section 194Q.

Suresh S. Tejwani online

Suresh S. Tejwani online

(Querist)
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09 August 2024 Whether TDS u/s 194Q would be applicable on brass scrap if TCS is not dedcuted by seller under section 206CE?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 August 2024 Yes.

Suresh S. Tejwani online

Suresh S. Tejwani online

(Querist)
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10 August 2024 The first responsibility of seller is to collect TCS under section 206CE so can disallowance can be made to buyer is TDS is not deducted by him u/s 194Q? As seller has not collected TCS under 206CE.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 August 2024 No. when seller doesn't collect TCS, buyer if liable, has to deduct TDS.

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