TCS ON SALE OF GOODS UNDER SECTION 206C (1) H & TDS ON PURCHASE OF GOODS UNDER SECTION 194Q

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This discussion addresses concerns about whether TCS on sale of goods under Section 206C(1H) and TDS on purchase of goods under Section 194Q are still in effect. Both sections remain applicable. Section 194Q mandates TDS on purchases exceeding ₹50 lakh annually for businesses with a turnover over ₹10 crore, while TCS applies similarly to sales. The ₹50 lakh limit is assessed each financial year.

Hukam Chand

Hukam Chand (Querist)
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09 June 2022 Dear,
I want to know whether tcs on sale of goods and tds on purchase of goods section are still applicable or not? because some taxpayers are saying that both these sections have been withdrawn by the government so please update by doing?

PARAS CHHAJED

PARAS CHHAJED

(Expert)
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10 June 2022 Both TDS and TCS continue. Section 194Q is for TDS on purchases exceeding Rs.50 lacs in a year if turnover exceeds Rs.10 crore. Likewise, TCS on sale. The limit of Rs.50 lacs to be checked each year.

CA Puja Sharma

CA Puja Sharma (Expert)
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10 June 2022 Yes, both the sections are still applicable.

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