Say A and B both having turnover more than 10 crores in previous year, now there are two different transaction, One - A Sales Milk worth Rs. 60 lacs to B, And in another transaction A Purchases cattle feeds worth Rs. 51 lacs from B, In this case TDS / TCS both Applicable ? or Only TDS will be applicable ? To Whom ? Please Explain in details if possible with reference.
7 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 03 August 2021
Yes TDS and TCS both are applicable as turnover purchase consideration are being met and turnover also is more than 10 crores rupees
debora M
(BUSINESS DEVELOPMENT MANAGER)
(1697 Points)
Replied 03 August 2021
The provisions of Section 194Q supersedes Section 206C(1H) and imposes primary liability on buyer to deduct tax. As per section 194Q, Buyer who is responsible for paying any sum to any resident (Seller) for purchase of any goods of the value or aggregate of such value exceeding Rs 50 Lakhs during the year, shall deduct TDS @ 0.10%, on amount exceeding Rs.50 Lakhs.
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 03 August 2021
Tax to be deducted at source u/s 194q in respect of each of the purchase transactions. That is B will deduct on ₹10 lacs and A will deduct on ₹1 lac.
Nidhi
(Chief Accountant)
(3150 Points)
Replied 04 August 2021
The provisions of Section 194Q supersedes Section 206C(1H) and imposes primary liability on buyer to deduct tax. As per section 194Q, Buyer who is responsible for paying any sum to any resident (Seller) for purchase of any goods of the value or aggregate of such value exceeding Rs 50 Lakhs during the year, shall deduct TDS @ 0.10%, on amount exceeding Rs.50 Lakhs.
So, Purchaser will Deduct TDS i.e B in milk and A in cattle purchase
So, Purchaser will Deduct TDS i.e B in milk and A in cattle purchase
Astaf Mansuri
(Practicing Chartered Accountant )
(177 Points)
Replied 04 August 2021
ok, thank you all, i am also in opinion to deduct TDS from both end. But there was little confusion that in case there is TDS from both end, which raised the unnecessary extra compliance.
Recent Topics
- Softex For freelancer ?
- GST ON REIUMBURSEMENT ENTRY ON GST PORTAL
- Missing invoice in gst
- GST on consultancy
- Linking adhaar to UAN without employer
- WHETHER ITC REVERSAL TH. GSTR 3B OR DRC03
- Advance Tax For Freelancers
- Is fvu 8.8 version available ?
- Interest and penalty on advance tax shortfall
- Joint Account with 3 legal heirs.......
Related Threads
CAclubindia
