06 June 2021
Applicability of section 194Q with Examples: Seller’s Turover : Rs. 9 Crores Buyer’s Turover : Rs. 15 Crores Receipt or Payment for sale or purchase of Goods in previous year : Rs. 55 lakhs Taxability: Buyer’s Turnover is more than Rs. 10 Crores Taxable amount : Rs. 5 lakhs ( Rs. 55 lakhs-Rs.50 lakhs) TDS u/s194Q : 0.1% on Rs. 5* lakhs TCS u/s 206C(1H): not applicable as Seller’s turnover is less than 10 Crores. Seller’s Turover : Rs. 15 Crores Buyer’s Turover : Rs. 9 Crores Receipt or Payment for sale or purchase of Goods in previous year : Rs. 55 lakhs Taxability: Buyer’s Turnover is less than Rs. 10 Crores Seller’s Turover is more than Rs. 10 Crores Taxable amount : Rs. 5 lakhs ( Rs. 55 lakhs-Rs.50 lakhs) TDS u/s194Q : Not applicable TCS u/s 206C(1H): 0.1% on Rs. 5 lakhs**. Seller’s Turover : Rs. 15 Crores Buyer’s Turover : Rs. 15 Crores Receipt or Payment for sale or purchase of Goods in previous year : Rs. 55 lakhs Taxability: Buyer’s Turnover is more than Rs. 10 Crores Seller’s Turover is more than Rs. 10 Crores Taxable amount : Rs. 5 lakhs ( Rs. 55 lakhs-Rs.50 lakhs) TDS u/s194Q : 0.1% on Rs. 5 lakhs* TCS u/s 206C(1H): Not applicable.
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