Tds on purchase 94Q

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This discussion addresses the confusion around deducting Tax Deducted at Source (TDS) under Section 194Q when the seller has already collected Tax Collected at Source (TCS) under Section 206C(1H) on the same transaction. While generally, TCS collection negates the need for TDS on the same purchase, some sellers continue to charge TCS. The query seeks clarification and official circulars to determine the correct procedure when a buyer is liable for TDS under 194Q but the seller has charged TCS.

ramesh jain

ramesh jain (Querist)
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09 September 2021 respected sir, i purchased goods from party . but some parties have issued bill iwith tcs on sale please advice me sill i have to pay tds on purchase?.my turnover is above 50 cr

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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10 September 2021 No, if TCS u/s 206C(1H) is charged by the seller, no need of TDS u/s 194Q on the same transaction

ramesh jain

ramesh jain (Querist)
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12 September 2021 poorniji, your reply may right but 194Q is applicable to me but seller party has still collected tcs from me.please give me circular no.for future ref.
with thanks

ramesh jain

ramesh jain (Querist)
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18 September 2021 respected sir, from july 2021 govt.has imposed 194 Q but some seller are still charging tcs 206C.please advice me clearly should still i collect and pay tds on purchase/some ca advice that 194Q tds require to deduct even if tcs has been collected

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