Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

TDS 194Q and Form 26Q

790 views

Save Share

Join Us Follow Us Add as Source

Subramanya

Tax Consultant

415 Points Posted on 03 March 2022

Dear Sir,

In case goods purchased from a non-resident who is having Permanent Establishment in India, TDS has to be deducted u/s 194Q. However, being Creditor residential status is Non-resident and having permanent establishment whether to include in Form 26Q or Form 27Q ?

I believe it should be included in Form 26Q and not in Form 27Q, please clarity

Thanks in Advance

Replies (2)

Quick Summary

This discussion clarifies the correct TDS filing form for purchases from non-residents who have a Permanent Establishment (PE) in India, under Section 194Q. The core question is whether such transactions should be reported in Form 26Q or Form 27Q. The consensus leans towards Form 26Q, as it's used for TDS on payments other than salary, which applies here, even though the creditor is a non-resident with a PE.

debora M

BUSINESS DEVELOPMENT MANAGER

1382 Points Posted on 04 March 2022

According to the new provision – 194Q of the Income Tax Act, the buyer of the goods is obliged to deduct the TDS of the seller of the goods if the products purchased by the buyer from a specific seller have an annual value of Rs. 50,00,000/- or more.

Form 26Q is used to file TDS details on payments made other than salary. ... The form mentions the total amount that is paid during the quarter and the TDS amount that has been deducted.