TDS U/S 194Q AND TCS U/S 206C1H CROSS APPLICATION

WE ARE LIABLE TO COLLECT TCS ON SALES U/S 206 C (1H)

NOW OUR ONE CUSTOMER IS NOT LIABLE TO DEDUCT TDS U/S 194Q THOUGH HE IS DEDUCTING TDS AND ASKING US TO NOT COLLECT TCS BECAUSE HE HAS ALREADY DEDUCTED TDS.

NOW QUESTION  IS THAT WHETHER WE ARE LIABLE TO COLLECT TCS U/S 206C (1H) IF HE IS DEDUCTING TDS U/S 194Q THOUGH HE IS NOT LIABLE?

Replies (4)
Quick Summary
This discussion clarifies the interaction between TDS under Section 194Q and TCS under Section 206C(1H). It addresses a scenario where a customer, though not liable for TDS, deducts it and requests the seller not to collect TCS. The consensus is that if the customer is voluntarily complying with TDS, the seller's TCS liability may cease. It's advised to obtain a declaration from the customer confirming their voluntary TDS deduction.

No now your liability to collect TCS came to an end since you tax is already been deducted
You should collect TCS as your are liable to collect and your customer is not liable for TDS deduction then why he deduct TDS
Why your customer is deducting TDS don't understand.
But if he is complying voluntarily then take the declaration from him that he will deduct the TDS and complying provisions voluntarily.
Obtain the declaration from your customer

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