Applicability of Sec 206C(1H) on sell of paddy by traders

Whether one is liable to collect TCS u/s 206C(1H) on sell of paddy to industries engaged in production of rice?

If we talk about reverse case whether TDS u/s 194Q is liable to be deducted on purchase of paddy if it exceeds the limit stated?

Replies (3)
Quick Summary
This discussion clarifies the applicability of Section 206C(1H) regarding Tax Collected at Source (TCS) on the sale of paddy by traders to industries that produce rice. It confirms that TCS is indeed applicable in such scenarios. Furthermore, it addresses the reverse situation concerning Tax Deducted at Source (TDS) under Section 194Q for the purchase of paddy, stating its applicability if the purchase exceeds the prescribed limits. The key takeaway is that there are no specific exclusions for agricultural products under either Section 206C(1H) or 194Q.

1st , yes same is liable,

2nd, Yes 194 Q is applicable, if buyer has deducted TDS in 194Q then TCS is not applicable, if Buyer makes default then seller is liable to collect TCS.

So it means there is no exclusion of Agricultural products u/s 206C(1H) and 194Q?

Yes , there is no exclusion

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