Income Tax Section 194Q
This query is : Resolved
16 January 2023
We are manufacturing of stickers and one of our party we have sold value 49 Lacs material.
Which IT section applicable to us 194Q or 206C. Last year our Turnover is Rs.1.10 Crore.
Which IT section applicable to us 194Q or 206C. Last year our Turnover is Rs.1.10 Crore.
16 January 2023
This section 194Q of IT act applies to a buyer in the following cases:
A buyer whose turnover or gross receipt or sales in the immediately preceding financial year was more than Rs 10 crore, and
The buyer is responsible for making payment of a sum to the resident seller, and Such payment is to be done for the purchase of goods of the value/aggregate of the value exceeding Rs 50 lakh
A buyer whose turnover or gross receipt or sales in the immediately preceding financial year was more than Rs 10 crore, and
The buyer is responsible for making payment of a sum to the resident seller, and Such payment is to be done for the purchase of goods of the value/aggregate of the value exceeding Rs 50 lakh
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16 January 2023
For example ...
For a financial year (FY) that ended on March 31, 2022, if your buyer had turnover more than Rs 10 crore in that year, then they needs to deduct TDS from their resident seller (including you) on the purchase of goods above Rs 50 lakh in the current financial year 2022-23.
For a financial year (FY) that ended on March 31, 2022, if your buyer had turnover more than Rs 10 crore in that year, then they needs to deduct TDS from their resident seller (including you) on the purchase of goods above Rs 50 lakh in the current financial year 2022-23.
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17 January 2023
For triggering of sec. 194Q or 206C(1H) a turnover of Rs. 10cr is required in immediately preceding financial year along with purchase or sell of goods Rs. 50L to each party.
In your case if buyer has applicable of sec. 194Q, he will deduct tds u/s 194Q of IT Act over and above Rs. 50L purchases.
In your case if buyer has applicable of sec. 194Q, he will deduct tds u/s 194Q of IT Act over and above Rs. 50L purchases.
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17 January 2023
Sec.: 206C(1h) IT act:: As per this provision, a seller whose turnover is above Rs 10 crore is required to collect tax, when he receives more than Rs 50 lakh from one buyer during a financial year. It is to be noted that the TCS should be collected at the time of receipt of the amount.
Summary of provision As Mentioned In Section 206C(1H) as below.
1) TCS have come into force with effect from 1 October 2020
2) Turnover is more than 10 crores in the previous financial year i.e. the year ended 31 March 2020.
3) This year you will have to collect and deposit TCS on your receipts from sale of goods from such buyers from whom you received more than Rs. 50 Lakhs as sale consideration during the current Financial year.
4) The TCS is payable on the amount of receipt which is greater than 50 Lakhs and received after 1st. Oct. 2020.
5) As per section 206C(1H), TCS will not be applicable if buyer is liable to deduct TDS under any other provisions of the Act. On the contrary, section 194Q does not create any such exception for the transactions on which tax is collectible under section 206C(1H).
For more details refer ::
https://www.caclubindia.com/articles/section-194q-and-206c1h-45657.asp
Summary of provision As Mentioned In Section 206C(1H) as below.
1) TCS have come into force with effect from 1 October 2020
2) Turnover is more than 10 crores in the previous financial year i.e. the year ended 31 March 2020.
3) This year you will have to collect and deposit TCS on your receipts from sale of goods from such buyers from whom you received more than Rs. 50 Lakhs as sale consideration during the current Financial year.
4) The TCS is payable on the amount of receipt which is greater than 50 Lakhs and received after 1st. Oct. 2020.
5) As per section 206C(1H), TCS will not be applicable if buyer is liable to deduct TDS under any other provisions of the Act. On the contrary, section 194Q does not create any such exception for the transactions on which tax is collectible under section 206C(1H).
For more details refer ::
https://www.caclubindia.com/articles/section-194q-and-206c1h-45657.asp
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18 January 2023
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