Difference sec 194q vs sec 206(c)

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Kollipara Sundaraiah (Querist)
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05 June 2021 Sir,
Confused What is the difference between sec 194q and sec 206(c) in it act and applicable assess in it act.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 June 2021 Applicability of section 194Q with Examples:
Seller’s Turover : Rs. 9 Crores

Buyer’s Turover : Rs. 15 Crores

Receipt or Payment for sale or purchase of Goods in previous year : Rs. 55 lakhs

Taxability:

Buyer’s Turnover is more than Rs. 10 Crores

Taxable amount : Rs. 5 lakhs ( Rs. 55 lakhs-Rs.50 lakhs)

TDS u/s194Q : 0.1% on Rs. 5* lakhs

TCS u/s 206C(1H): not applicable as Seller’s turnover is less than 10 Crores.

Seller’s Turover : Rs. 15 Crores

Buyer’s Turover : Rs. 9 Crores

Receipt or Payment for sale or purchase of Goods in previous year : Rs. 55 lakhs

Taxability:

Buyer’s Turnover is less than Rs. 10 Crores

Seller’s Turover is more than Rs. 10 Crores

Taxable amount : Rs. 5 lakhs ( Rs. 55 lakhs-Rs.50 lakhs)

TDS u/s194Q : Not applicable

TCS u/s 206C(1H): 0.1% on Rs. 5 lakhs**.

Seller’s Turover : Rs. 15 Crores

Buyer’s Turover : Rs. 15 Crores

Receipt or Payment for sale or purchase of Goods in previous year : Rs. 55 lakhs

Taxability:

Buyer’s Turnover is more than Rs. 10 Crores

Seller’s Turover is more than Rs. 10 Crores

Taxable amount : Rs. 5 lakhs ( Rs. 55 lakhs-Rs.50 lakhs)

TDS u/s194Q : 0.1% on Rs. 5 lakhs*

TCS u/s 206C(1H): Not applicable (see exception).

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