Section 194Q and 206C(1H) of Income Tax Act

Particulars Section 206C(1H) Section 194Q Section 206AB Section 206CCA
Situation TCS Collection by seller of goods. TDS deduction on payment for purchase of goods by buyer. Deduction of tax at source for recipient (specified person) is a non-filer of income tax return. Collection of tax at source from specified person who is a non-filer of income tax return.
Date of Applicability 01st October, 2020 01st July, 2021 01st July, 2021 01st July, 2021
Applicability Seller having turnover/ gross receipts exceeding Rs. 10 crores in the immediately preceding financial year. Buyer being resident or non-resident having turnover/ gross receipts exceeding Rs. 10 crores in the immediately preceding financial year. Specified Person means a person who has not filed the return for both the two previous year immediately prior to the year in which tax is required to be deducted, and aggregate amount of TDS/TCS in his case is Rs. 50,000 (or more) in each of these two previous year. Specified Person means a person who has not filed the return for both the two previous year immediately prior to the year in which tax is required to be collected and aggregate amount of TDS/TCS in his case is Rs. 50,000 (or more) in each of these two previous year.
Provision The seller has to collect TCS @ 0.1% of the sale consideration exceeding Rs. 50 lakh at the time of receipt from buyer.
If PAN is not furnished then TCS rate will be 1%.
The buyer has to deduct TDS @ 0.1% of the sum exceeding Rs. 50 lakh at the time of credit or at the time of payment, whichever is earlier. TDS rate will be higher of the twice the normal rate or 5%. TCS under section 206C will be collected at higher of twice the normal rate or 5%.
Exclusion 1. Buyer being a Central government, Local authority or Importer of goods.
2. TDS has been deducted by the buyer u/s 194Q
Not Applicable if TCS is collected by the seller under 206C except 206C (1H). TDS deduction under section 192, 192A, 194B, 194BB, 194LBC or 194N. Specified Person does not include Non-resident who does not have a PE in India.

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