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Difference between Section 194Q and Section 206C(1H)
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Particulars
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Applicable to Whom
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Buyer/Purchaser
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Seller
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Applicable from
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w.e.f. 01.07.2021
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w.e.f. 01.10.2020
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Not Applicable to Whom
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Not yet notified by Government
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If buyer is –
* Importer of goods
* Center/State Govt., Local Authority
* An Embassy, High Commission, Consulate and Trade Representation of a Foreign State
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Conditions
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Turnover/Gross Receipt/Sales from the business of Buyer should exceeds Rs. 10 Crore in Previous Financial Year
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Turnover/Gross Receipt/Sales from the business of Seller should exceeds Rs. 10 Crore in Previous Financial Year
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Rate of TDS/TCS if PAN/Aadhar furnished or not
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* 0.1% (If PAN available)
* 5% (If PAN not available)
* On amount exceeding Rs 50 Lakhs
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* 0.1% (If PAN available)
* 1% (If PAN not available)
* On amount exceeding Rs 50 Lakhs
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Time of Deduction / Collection
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Payment or credit whichever is earlier
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At the time of receipt
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Liability of Deduction/ Collection
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Buyer is liable
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Seller is liable
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Not applicable on
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* 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)
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* 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
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Amount of tax deducted shall be deposited with government by 7th day of subsequent month
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Amount of tax deducted shall be deposited with government by 7th day of subsequent month
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Whether TAN required or not
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Required
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Required
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26Q
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27EQ
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Form 16A
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Form 27D
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Examples with Table whether section 194Q or Section 206C(1H), applicable or Not Applicable-
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Turnover in Preceding Financial Year (in Crore)
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Receipt/Payment for Sale or Purchase of Goods in the previous year (in Lakhs)
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Taxable Amount (in Lakhs)
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Applicable/Not Applicable Section 194Q
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Applicable/Not Applicable Section 206C(1H)
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Seller
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Buyer
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18
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8
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60
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10
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Not Applicable (Buyer’s Turnover is less than 10 Crore)
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Applicable (Seller’s Turnover is more than Rs. 10 Crores)
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18
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12
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60
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10
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Applicable (Buyer’s Turnover is more than Rs. 10 Crores)
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Not Applicable (Because Section 194Q is applicable even Seller’s Turnover is more than Rs. 10 Crores)
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8
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8
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60
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0
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Not Applicable (Buyer’s Turnover is less than 10 Crore)
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Not Applicable (Seller’s Turnover is less than Rs. 10 Crores)
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8
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18
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60
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10
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Applicable (Buyer’s Turnover is more than 10 Crore)
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Not Applicable (Seller’s Turnover is less than Rs. 10 Crores or Section 194Q Applied)
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