TDS LIABLITY U/S 194Q

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satish kumar Chauhan (Querist)
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03 December 2022 R/sir/madam

We have sold the coal to a manufacturing unit against Form 27C and no TCS charged in Invoice.
In this case any liability arise for TDS U/s 194Q or any other section of buyer or supplier.

Thanks to all experts

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 December 2022 Yes, TDS u/s. 194Q applicable to buyer, if eligible.
Second Proviso to Section 206C(1H) provides that if the buyer is liable to deduct tax under any other provision on the goods purchased by him from the seller and has deducted such amount, no tax shall be collected on the same transaction.

Section 194Q(5) provides that no tax is required to be deducted by a person under this provision if tax is deductible under any other provision or tax is collectable under section 206C [other than a transaction on which tax is collectable under Section 206C(1H)].

Though Section 206C(1H) excludes a transaction on which tax is actually deducted under any other provision (which will cover Section 194Q as well), but Section 194Q(5) does not create a similar exception for a transaction on which tax is collectible under Section 206C(1H).

Thus, the buyer shall have the primary and foremost obligation to deduct the tax and no tax shall be collected on such transaction under Section 206C(1H).

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