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INCOME TAX TDS U/S 194Q

D.Srinivasulu (B.SC) (202 Points)

12 October 2021

hai gd after noon to Income tax team,
we are crossed 10 cr turnover in previous year so liable to deduct TDS U/s 194 Q, but my sellers RAISING TCS AMOUNT IN INVOICE, WE HAD TOLD SO MANY TIMES DONT RAISE TCS AMOUNT IN INVOICE, BUT STILL TCS AMOUNT ADDED IN INVOICE. REGARDING THIS WE HAVE TO TDS U/S 194Q OR NOT BECAUSE THEY ARE ADDING TCS IN INVOICE PLS SUGGEST

SRINIVAS

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195666 Points)
Replied 12 October 2021

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

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195666 Points)
Replied 12 October 2021

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.

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