Sec 194 Q/206 C1H

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This discussion clarifies the application of Section 194Q (TDS) and Section 206C(1H) (TCS) for businesses with turnover under 10 Cr. If a buyer deducts TDS under Section 194Q, TCS under Section 206C(1H) is generally not applicable, preventing double taxation. The key is that Section 194Q takes precedence when both sections might apply.

CA.Rashmi Billore

CA.Rashmi Billore (Querist)
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02 July 2021 Dear Experts,

My organization had turnover of less than 10 Cr. in previous year, if we have not received declaration u/s 194 Q from buyer ( we have not confirmed whether they will deduct TDS).

Now, we are liable to charge TCS or Not , as in previous year my turnover is less than 10 Cr.
If Buyer will deduct TDS there is duel taxation ?

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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02 July 2021 TCS not applicable to you for this year because turnover within the threshold limit. The buyer will deduct tax at source u/s 194Q wherever applicable.

CA.Rashmi Billore

CA.Rashmi Billore (Querist)
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02 July 2021 But as I understand sec. 194Q prevail the section 206 C(1)H.

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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02 July 2021 You are right. But the query here is different right?

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