"Great things never come from comfort zone"           "Wealthy people invest first and spend what’s left and broke people spend first and invest what’s left"           "Investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the future"           "The secret to getting ahead is getting started.................Start using your Savings to Earn Money"           "The best gift, and investment, you can give your child is your time"           "Investing in your child’s education is never a wasted effort"           "Making money and handling money are both different things"

Difference-between-Section-194Q-and-Section-206C(1H)

 

Difference between Section 194Q and Section 206C(1H)

303 views
0
Difference between Section 194Q and Section 206C(1H)-

Particulars

Applicable to Whom

Buyer/Purchaser

Seller

Applicable from

w.e.f. 01.07.2021

w.e.f. 01.10.2020

Not Applicable to Whom

Not yet notified by Government

If buyer is –

*  Importer of goods

*  Center/State Govt., Local Authority

*  An Embassy, High Commission, Consulate and Trade Representation of a Foreign State

Conditions

Turnover/Gross Receipt/Sales from the business of Buyer should exceeds Rs. 10 Crore in Previous Financial Year

Turnover/Gross Receipt/Sales from the business of Seller should exceeds Rs. 10 Crore in Previous Financial Year

Rate of TDS/TCS if PAN/Aadhar furnished or not

*  0.1% (If PAN available)

*  5% (If PAN not available)

*  On amount exceeding Rs 50 Lakhs

*  0.1% (If PAN available)

*  1% (If PAN not available)

*  On amount exceeding Rs 50 Lakhs

Time of Deduction / Collection

Payment or credit whichever is earlier

At the time of receipt

Liability of Deduction/ Collection

Buyer is liable

Seller is liable

Not applicable on

*  Transactions on which TDS is deductible under any other provisions of this act

*  Transactions on which TCS is collectible under the provision of Section 206C, other than 206C(1H)

*  Transaction on which TDS/TCS is applicable under any other provisions of this act or where TDS has been deducted u/s 194Q this section will not apply

Amount of tax deducted shall be deposited with government by 7th day of subsequent month

Amount of tax deducted shall be deposited with government by 7th day of subsequent month

Whether TAN required or not

Required

Required

26Q

27EQ

Form 16A

Form 27D

   

Examples with Table whether section 194Q or Section 206C(1H), applicable or Not Applicable-

Turnover in Preceding Financial Year (in Crore)

Receipt/Payment for Sale or Purchase of Goods in the previous year (in Lakhs)

Taxable Amount (in Lakhs)

Applicable/Not Applicable Section 194Q

Applicable/Not Applicable Section 206C(1H)

Seller

Buyer

 

 

 

 

18

8

60

10

Not Applicable (Buyer’s Turnover is less than 10 Crore)

Applicable (Seller’s Turnover is more than Rs. 10 Crores)

18

12

60

10

Applicable (Buyer’s Turnover is more than Rs. 10 Crores)

 

Not Applicable (Because Section 194Q is applicable even Seller’s Turnover is more than Rs. 10 Crores)

 

8

8

60

0

Not Applicable (Buyer’s Turnover is less than 10 Crore)

Not Applicable (Seller’s Turnover is less than Rs. 10 Crores)

8

18

60

10

Applicable (Buyer’s Turnover is more than 10 Crore)

Not Applicable (Seller’s Turnover is less than Rs. 10 Crores or Section 194Q Applied)

 




Comments


Leave a Reply

Name *
Comments *
   

© 2021 - EnSkyAR Financial Services