194Q and 206C(1H)

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the interaction between Indian tax sections 194Q (TDS on purchase) and 206C(1H) (TCS on sale). It establishes that Section 194Q generally overrides Section 206C(1H) when both apply to the same transaction. The advice provided indicates that if the seller has already collected TCS under 206C(1H), the buyer may not need to deduct TDS under 194Q, and consequently, Section 40a(ia) (disallowance for non-deduction) would not be attracted. The TCS collected by the seller can be claimed by the buyer when filing their Income Tax Return (ITR).

Garv Sharma

Garv Sharma (Querist)
Follow

18 August 2022 As per provision when a similar transaction falls between both sections 194Q and 206C(1H)....194Q Overrides.

My question is I was liable to deduct u/s 194Q however the seller has already deducted on the same amount under 206C(1H).

Accordingly,
1)Whether I am still liable to deduct under 194Q?
2)Is non deduction of TDS on purchase attract sec 40a(ia) ?
3) Treatment of TCS collected under 206C(1H).