of supply of timber goods is there amounting 1cr AND DECLARATION RELATING TO NOT COLLECT TCS is submitted for 206
then will 194q attracts or not?
8 Replies
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 07 August 2022
Yes , you have to deduct TDS u/s 194 Q if your turnover exceeds Rs. 10 crores
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177852 Points)
Replied 07 August 2022
As per the provision, when TCS section 206C is applicable over the transaction, TDS section 194Q will not be applicable.
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 08 August 2022
Sir TDS is Mandatory and TCS is optional
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177852 Points)
Replied 08 August 2022
Yes, Dear agreed... but check the exemption in the section...
194Q. (1) Any person, being a buyer who is responsible for paying any sum to any resident (hereafter in this section referred to as the seller) for purchase of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year, shall, at the time of credit of such sum to the account of the seller or at the time of payment thereof by any mode, whichever is earlier, deduct an amount equal to 0.1 per cent of such sum exceeding fifty lakh rupees as income-tax.
Explanation.—For the purposes of this sub-section, "buyer" means a person whose total sales, gross receipts or turnover from the business carried on by him exceed ten crore rupees during the financial year immediately preceding the financial year in which the purchase of goods is carried out, not being a person, as the Central Government may, by notification in the Official Gazette, specify for this purpose, subject to such conditions as may be specified therein.
(2) Where any sum referred to in sub-section (1) is credited to any account, whether called "suspense account" or by any other name, in the books of account of the person liable to pay such income, such credit of income shall be deemed to be the credit of such income to the account of the payee and the provisions of this section shall apply accordingly.
(3) If any difficulty arises in giving effect to the provisions of this section, the Board may, with the previous approval of the Central Government, issue guidelines for the purpose of removing the difficulty.
(4) Every guideline issued by the Board under sub-section (3) shall, as soon as may be after it is issued, be laid before each House of Parliament, and shall be binding on the income-tax authorities and the person liable to deduct tax.
(5) The provisions of this section shall not apply to a transaction on which—
(a) tax is deductible under any of the provisions of this Act; and
(b) tax is collectible under the provisions of section 206C other than a transaction to which sub-section (1H) of section 206C applies.]
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 08 August 2022
Sir clearly mentioned TCS in any section other then Section 206C(1H)
Karan Agarwal
(8 Points)
Replied 08 August 2022
Yes NON APPLICABILITY is for SEC 206C except 206C(1H) that means 206C(1H) works with 194Q
Mukesh Katara
(Account manager)
(533 Points)
Replied 04 September 2022
194 Q not applicable here timber company needs to charge tcs in his bills
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