194Q vs 206C(1h)

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This discussion clarifies the application of TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) on the purchase of goods. Section 194Q of the Income Tax Act applies TDS when the buyer's turnover exceeds ₹10 lakh, while TCS is collected by the seller. A general TDS provision applies if a business's overall turnover exceeds ₹1 crore, but the specific ₹10 crore threshold for Section 194Q takes precedence.

T.N.Reddy

T.N.Reddy (Querist)

10 April 2025 Sir, the TDS provisions will apply only when the buyer of goods turnover exceeds of RS.10,00,000 in the hands of the buyer, else the sellor has to collect TCS - am I right sir ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

10 April 2025 Yes, you are correct....

T.N.Reddy

T.N.Reddy (Querist)

10 April 2025 Sir, there is one section where in if the turnver exceesds one crores, then TDS provisions apply, kinldy help me out with that section .

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

10 April 2025 That condition is for overall applicability of TDS, when TO of business is 1 Cr or more; but for sec. 194Q, there is specific condition of 10 Crs. which overrides the general condition...

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

29 September 2025 Good luck..

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