Friends I've a querry and I want to ask it through an example and the example is given below:-
There are 2 person Ram and Shyam, Ram is purchaser and Shyam is seller, both have turnover above 10 crore in previous year.
Now in this financial year 2021-22 Ram purchase goods from Shyam of Rs 60 Lakh.
Now in this case are both of them liable to deduct TDS and TCS of each other (Ram will deduct TDS of Shyam under sec 194Q and Shyam will deduct TCS of Ram under sec 206C?)
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TDS under sec 194Q
Replies (5)
Primary responsibility is the person who purchased the goods
194Q would prevail over 206C(1H). So primarily the buyer is required to deduct tax at source u/s 194Q.
Provision is sec 206c(1H) will not apply.hence ram shall be liable to deduct tds at amount which is excess of ₹50 lacs at rate 0.1%.please read notification provided by cbdt
OK thank you friends
First of All 194(Q) is applicable for Purchase only. Hence there is no question for Shyam (the seller) to deduct TDS. In your Quarry Ram (the purchaser ) has fulfilled both the condition 1) More than 10crs turn over (assuming this turnover is exclusive of GST) & 2) The transaction limit with Shyam is crossing 50 lakhs . Hence Ram will be liable to deduct TDS. But in this example if the turnover of Ram does not exceed 10 crs then Shayam has to collect TCS U/S 206c(1H).
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