TDS U/s 194Q Petrol Pump

This query is : Resolved

Ajay Chandak (Querist)
Follow

06 January 2024 One of my client is running a petrol pump business. they bought petrol worth Rs. 15 crore during last F.Y 2022-23, from HPCL .. is there a requirement to deduct TDS u/s 194Q?

my Client has deducted TDS U/s 194Q from HPCL,
Now HPCL is denying to adjust same in bill.. and deducted TCS U/ Section 206C (1H)

now what option my client have.. plz guide

RAJA P M

RAJA P M (Expert)
Follow

07 January 2024 Tcs deduction is correct...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

07 January 2024 Don't remit the TDS not accepted.
Talk to HPCL once TCS deducted no need for TDS.

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

CA AJAY KUMAR AGRAWAL

CA AJAY KUMAR AGRAWAL (Expert)
Follow

08 January 2024 When Sec 194Q & 206C (1h), both are applicable then Sec 194Q prevails. Here many buyers (petrol pumps) may or may not deduct TDS u/s 194Q and HPCL being a Public Sector enterprise may not take risk of being defaulted, as such HPCL is collecting Tax u/s 206C (1h). HPCL's stand is correct at its place. Petrol Pump must have sorted out this matter with HPCL before start of the year or must have got declaration from HPCL.

Message likes : 1 times

RAJA P M

RAJA P M (Expert)
Follow

08 January 2024 Yes agreed.
But, here the querist asked about his customer deduct TDS. The customer can't deduct TDS for hpcl as govt company and they (hpcl) strictly following their provisions. So, here the buyer don't want deduct TDS.