INCOME TAX TDS U/S 194Q

As TDS u/s 194Q overrides TCS u/s. 206C(1h), you have to deduct TDS...

This TDS section 194Q is very similar to TCS section 206C(1H). However both these sections are mutually exclusive i.e. if one section becomes applicable the other will not apply.

As per section 206C(1H), TCS will not be applicable if buyer is liable to deduct TDS under any other provisions of the Act. On the contrary, section 194Q does not create any such exception for the transactions on which tax is collectible under section 206C(1H).

The provisions of Section 194Q supersedes Section 206C(1H) and imposes primary liability on buyer to deduct tax.

As per section 194Q, Buyer who is responsible for paying any sum to any resident (Seller) for purchase of any goods of the value or aggregate of such value exceeding Rs.50 Lakhs during the year, shall deduct TDS @ 0.10%, on amount exceeding Rs.50 Lakhs.

Refer Clause .... 4.9 of the circular 13/2021 dated 30.06.2021 ..... attached herewith