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Tds0.1 sec194q

amit kumar (31 Points)

01 July 2021

It is applicable only when buyer and seller turnover above 10cr.it is correct or not

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3 Replies

CMA Poornima Madhava (CMA) (13097 Points)
Replied 01 July 2021

194Q is applicable only when BUYER'S turnover/gross-receipts/sales is >10 cr in the preceding year.

amit kumar (31 Points)
Replied 01 July 2021

Not clear

Yogesh Pandey (144 Points)
Replied 02 July 2021

194Q is for buyer and turnover of only buyer will be considered here for 10cr limit.

For seller there is TCS u/s 206C(1H), here the turnover of seller will be considered for 10 cr limit.

BUT..

As per provision, TDS 194Q will have priority over TCS 206C(1H).
It means that where a buyer is liable to deduct TDS on a purchase transaction under Section 194Q, the seller shall not collect TCS on same.

In your case only buyer's turnover limit will be considered for 10 cr. Seller's turnover is not relevant.