194Q TDS applicable after tcs deducted

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This discussion clarifies whether Tax Deducted at Source (TDS) under Section 194Q is applicable when Tax Collected at Source (TCS) has already been deducted. The consensus is that if purchases were made after July 2021 and exceed 50 lakhs, TDS under 194Q is applicable, even if TCS has been collected. It's advised to ensure bills reflect purchases made after July 2021 for TDS to apply.

ARCHANA

ARCHANA

(Querist)
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09 November 2021 Sir/Mam,

we have purchased from party nearly 1 Crore they deducted TCS in PI , we have made part payment in july and now we are paying balance amount and they are ready issue final Tax invoice , Now we deduct tds or not 0.1% 194Q if we deduct TDS before TCS amount or after tcs amount Value

Plz clarify my doubt

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 November 2021 If the payment refers to purchases made before July, 2021; no need to deduct TDS (u/s. 194Q)

ARCHANA

ARCHANA

(Querist)
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09 November 2021 Thank you sir for your reply, part payment in july and now balance payment. They are deducting TCS, if TCS collected TDS applicable or not.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 November 2021 For the purchases from july 2021, TDS is applicable and not TCS. Ask to rectify the bills after July 2021, (for purchases made over 50 lakhs).

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ARCHANA

ARCHANA

(Querist)
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09 November 2021 Thank you Sir for your reply

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 November 2021 Most Welcome ....

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