Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

194Q section

149 views

Save Share

Nishan kotian

Tax practitioner

335 Points Posted on 13 July 2021

example XY. Turnover croses 10 cores P Y ( purchase party )

. . ZX. Turnover croses 10 cores
P Y
(sales party )

ZX collected tcs while making bill to XY

already ZX (SALES PARTY) collected tcs. XY (PURCHASE PARTY ) IS manditory to deducted tds making payment to ZX ..

Replies (3)

Quick Summary

This discussion clarifies Section 194Q of the Income Tax Act concerning Tax Deducted at Source (TDS) on purchases. It explains that if the seller (ZX) has already collected Tax Collected at Source (TCS) while issuing the bill, the buyer (XY) is generally not required to deduct TDS again on the same transaction. The primary responsibility for TDS lies with the buyer, but the seller's TCS collection exempts the buyer from this obligation.

CMA Poornima Madhava

CMA

13117 Points Posted on 13 July 2021

Primary responsibility is that of buyer. However, since tax has already been collected by the seller, the buyer is again not required deduct tax at source on the same transaction