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194Q versus 206C(1H)

CA Preksha Choraria (CA-Practicing) (480 Points)

05 February 2021

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CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 05 February 2021

194Q is proposed to provide that the provisions of this section shall not apply to,-

(i) a transaction on which tax is deductible under any provision of the Act; and

(ii) a transaction, on which tax is collectible under the provisions of section 206C other than transaction to which sub-section (1H) of section 206C applies.

This means, if on a transaction a TDS or tax collection at source (TCS) is required to be carried out under any other provision, then it would not be subjected to TDS under this section. There is one exception to this general rule. If on a transaction TCS is required under sub-section (1H) of section 206C as well as TDS under this section, then on that transaction only TDS under this section shall be carried out.