TDS U/s 194Q Petrol Pump

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A petrol pump client purchased petrol worth ₹15 crore from HPCL in FY 2022-23. The client deducted TDS under Section 194Q, but HPCL refused to adjust it, having already collected TCS under Section 206C(1H). While Section 194Q generally prevails when both sections apply, HPCL, as a PSU, is likely taking a cautious approach by collecting TCS. The consensus is that the petrol pump should not remit the TDS if TCS has been deducted, and communication with HPCL is advised.

Ajay Chandak

Ajay Chandak (Querist)
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06 January 2024 One of my client is running a petrol pump business. they bought petrol worth Rs. 15 crore during last F.Y 2022-23, from HPCL .. is there a requirement to deduct TDS u/s 194Q?

my Client has deducted TDS U/s 194Q from HPCL,
Now HPCL is denying to adjust same in bill.. and deducted TCS U/ Section 206C (1H)

now what option my client have.. plz guide

RAJA P M

RAJA P M (Expert)
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07 January 2024 Tcs deduction is correct...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 January 2024 Don't remit the TDS not accepted.
Talk to HPCL once TCS deducted no need for TDS.

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CA AJAY KUMAR AGRAWAL

CA AJAY KUMAR AGRAWAL (Expert)
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08 January 2024 When Sec 194Q & 206C (1h), both are applicable then Sec 194Q prevails. Here many buyers (petrol pumps) may or may not deduct TDS u/s 194Q and HPCL being a Public Sector enterprise may not take risk of being defaulted, as such HPCL is collecting Tax u/s 206C (1h). HPCL's stand is correct at its place. Petrol Pump must have sorted out this matter with HPCL before start of the year or must have got declaration from HPCL.

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RAJA P M

RAJA P M (Expert)
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08 January 2024 Yes agreed.
But, here the querist asked about his customer deduct TDS. The customer can't deduct TDS for hpcl as govt company and they (hpcl) strictly following their provisions. So, here the buyer don't want deduct TDS.

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