Section 194Q and 206C(1H)

Section 194Q and 206C(1H)

In connection to the new provision (S.194Q) relating to TDS with effect from 01 July 2021 on the goods purchased by you from Supplier !

Section 194Q shall be applicable if the following conditions are fulfilled:
Gross Turnover of your enterprise exceeds Rs. 10 Crores for FY 2020-21;
AND
Aggregate value of purchases made from Supplier exceeds Rs. 50 lakh in the FY 2021-22;

Then TDS @ 0.1 % shall be deducted at source.

The above TDS provision shall co-exist with TCS provisions and is tabulated below.

For Customer reference

For Supplier reference

Primary Responsibilty is on Customer for TDS u/s 194Q. If TDS provision not applicable then TCS provisons need to apply..

Further, as per new provision (S. 206CCA) with effect from 01 July 2021, tax shall be collected at higher rate where the customer have not filed income-tax return for preceding two assessment years.(I.e. for AY 2019-20 and AY 2020-21.)