TCS vs 194Q

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This discussion clarifies the interaction between Tax Collected at Source (TCS) and Tax Deducted at Source (TDS) under Section 194Q of the Income Tax Act. If a supplier has already charged TCS on goods, the buyer is generally not required to deduct TDS under Section 194Q on the same transaction. This is because the primary liability for tax collection rests with the seller in such cases, and the buyer avoids double taxation.

Anirudha

Anirudha (Querist)

26 July 2021 Dear Sir,

If a supplier supply the goods in this also charge TCS in that , can we deduct TDS in that bill??

Request you kindly help...

Regards
Anirudha Biswal
9818159649

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

26 July 2021 No TDS when TCS is charged.

CA Altamush Zafar

CA Altamush Zafar (Expert)

26 July 2021 Primary liability is of TDS. If tds is not applicable u/s 194Q then tcs can be collected by seller.

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

26 July 2021 Even though the primary responsibility is that of the buyer to deduct tax u/s 194q, if TCS has already been collected by the seller on the same transaction, the buyer is not required to deduct tax u/s 194q again. This is as per the latest clarification issued by CBDT.

Harshit Bangar

Harshit Bangar (Expert)

27 July 2021 deducting TDS under section 194Q is compulsory but TCS is not applicable where that payment and receipt is covered under any other TDS or TCS provisions.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

27 July 2021 194Q and TCS on supply of goods not applicable where that payment and receipt is covered under any other TDS or TCS provisions.

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