Taxontips
No Result
View All Result
Saturday, January 28, 2023
  • Home
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST Registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
Talk to an Expert
  • Home
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST Registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
No Result
View All Result
Taxontips
No Result
View All Result

What is Section 194Q- TDS on sale of goods introduced by Budget 2021? TDS u/s 194Q vs. TCS 206C(1H)

Income tax Expert by Income tax Expert
February 14, 2021
in Budget News, Income Tax News
3
CBDT issues circular for detailed explanation on TDS deduction u/s 192 of the Income tax act
148
SHARES
1.9k
VIEWS
image_pdfPDFimage_printPrint

Budget 2021, was presented in Parliament on 01.02.2021 wherein although very few amendments were introduced in Direct tax as compared to earlier years.

However one of the major amendment introduced in Budget 2021 was TDS on sale of goods u/s 194Q which is as under:

“(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.’”

In Memorandum to budget 2021 no specific reason has been provided for introduction of such TDS when TCS u/s 206C(1H) was already introduced by Finance Act, 2020. The only clarification mentioned in memorandum for this section is as under:

“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.”

Thus as mentioned above there was already TCS provision for sale of goods and now TDS has also been introduced for similar kind of transaction. As we can see all the provisions and conditions are similar and hence department has introduced a clarification that TCS is not required to be collected on transaction where TDS is being deducted.

Hence, now before the transaction the seller and buyer have to communicate with each other that whether buyer will deduct TDS or seller will collect TCS.

Although deducting TDS would be more sensible and more practical in all situation.

Further, the definition of turnover would change in TDS and TCS, as under TDS GST won’t be a part of turnover whereas under TCS GST would form a part of turnover.

Thus, it would be interesting to see as to how people will again change their system and accounting software for such TDS and what is the motive of government behind such TDS.

Also, this TDS provision will be a pathbreaking thing because till date there was no TDS provision on sale of goods as all the TDS provision were for service but now this provision has been inserted.

What are your thoughts comment below.

image_pdfPDFimage_printPrint
Tags: new tds provisionSection 194QTDSTDS on sale of goods
Previous Post

How to register as a legal heir on e filing website and file Income tax return | Who can register as a legal heir?

Next Post

Cryptocurrency bill will be introduced in Parliament to ban other cryptocurrency in India

Related Posts

Penalty for Non filing or Late filing of Tax audit report – Section 271B and condonation in filing Tax Audit report
Income Tax News

Consequences of Accepting cash while selling a Immovable property, land or house | 100% Penalty

January 26, 2023
GST registration
GST news

Clarification regarding GST rates and classification of certain goods based on the recommendations of the GST Council in its 48th meeting held on 17th December, 2022

January 19, 2023
No TDS on interest income upto Rs. 40,000 from bank – Section 194A Limit revised
Income Tax News

E-mail from TRACES to deductors explaining the e-verification scheme. What to do?

January 18, 2023
Guidelines for manual selection of returns for Complete Scrutiny during the financial-year 2019-20-
Income Tax News

Limit of SFT reporting in case of interest removed by Income Tax Department

January 13, 2023
Guidelines for manual selection of returns for Complete Scrutiny during the financial-year 2019-20-
Income Tax News

Provisions related to Set off of losses under various heads of Income during the year in Income Tax Act

January 10, 2023 - Updated on January 11, 2023
Tatva Chintan Pharma Chem Limited IPO details and capital gain tax on selling IPO allotment | Capital gain on IPO
Income Tax News

Extension of time limit for compliance to be made for claiming any exemption under Section 54 to 54GB of the I.T. Act till 31.03.2023

January 9, 2023
Next Post
Cryptocurrency bill will be introduced in Parliament to ban other cryptocurrency in India

Cryptocurrency bill will be introduced in Parliament to ban other cryptocurrency in India

Comments 3

  1. Pingback: TDS u/s 194Q needs to be deducted on purchase value of goods including or excluding GST i.e. TDS on taxable value or invoice value? - Taxontips
  2. Pingback: Finance bill 2021 passed in both houses or parliament and is now an act | More than 100 amendments | 25 Major amendments of Finance act, 2021 - Taxontips
  3. Pingback: TDS Rate Chart for FY 2021-22 i.e. w.e.f. 01.04.2021 | Rate of tax deduction at source from 01.04.2021 - Taxontips

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Google Custom search

Recent Posts

  • Clarification on entitlement of ITC where place of supply is determined in terms of proviso to sub-section (8) of section 12 of the IGST Act
  • Consequences of Accepting cash while selling a Immovable property, land or house | 100% Penalty
  • How many articles can a Chartered Accountant register for articleship?
  • Advisory on facility of ‘Initiating Drop Proceedings’ of Suspended GSTINs due to Non-filing of Returns – Update
  • ICAI has launched free task management or practice management software for members in Practice

Recent Comments

  • Leonard Linton on Clarification for the purposes of Section 269ST of the I.T. Act in respect of dealership/distributorship contract in case of Co-operative Societies
  • Advisory on facility of ‘Initiating Drop Proceedings’ of Suspended GSTINs due to Non-filing of Returns - Update - Taxontips on Advisory on “Initiating Drop Proceeding” by taxpayers for non-filing of GST returns
  • Clarifications regarding applicability of GST on certain services based on 48th GST council meeting - Taxontips on Clarification regarding GST rates and classification of certain goods based on the recommendations of the GST Council in its 48th meeting held on 17th December, 2022
  • Module wise new functionalities deployed on the GST Portal for taxpayers – December 2022 - Taxontips on Advisory on “Initiating Drop Proceeding” by taxpayers for non-filing of GST returns
  • Advisory on “Initiating Drop Proceeding” by taxpayers for non-filing of GST returns - Taxontips on IMPORTANT CHANGES IN GST PURSUANT TO 47TH GST COUNCILE MEETING [Read notification]

Categories

  • Budget News
  • Business & Other News
  • Case Laws
  • GST news
  • Income Tax News
  • News

Browse Topics by Date

January 2023
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
3031  
« Dec    
  • GSTR 9/ 9C due date to be extended to 31.10.2020 | E-invoicing will be voluntary in the beginning 79.3k views
  • How to pay Membership and COP fees of ICAI for 2020-21 | 77.8k views
  • Code/ Nature of payment 6CR updated by NSDL in challan 281 for paying TCS on sale of goods 67.9k views

Recent Notification

Further clarification by CBIC for claiming 20% ITC on invoices not available in GSTR – 2A. Circular 123/42/2019 – GST

Clarification on entitlement of ITC where place of supply is determined in terms of proviso to sub-section (8) of section 12 of the IGST Act

January 27, 2023
Penalty for Non filing or Late filing of Tax audit report – Section 271B and condonation in filing Tax Audit report

Consequences of Accepting cash while selling a Immovable property, land or house | 100% Penalty

January 26, 2023

RSS Taxontips

  • Clarification on entitlement of ITC where place of supply is determined in terms of proviso to sub-section (8) of section 12 of the IGST Act
  • Consequences of Accepting cash while selling a Immovable property, land or house | 100% Penalty
  • How many articles can a Chartered Accountant register for articleship?
  • Advisory on facility of ‘Initiating Drop Proceedings’ of Suspended GSTINs due to Non-filing of Returns – Update
  • ICAI has launched free task management or practice management software for members in Practice
  • Clarification regarding the treatment of statutory dues under GST law [Read circular]
  • Clarifications regarding applicability of GST on certain services based on 48th GST council meeting
  • Clarification regarding GST rates and classification of certain goods based on the recommendations of the GST Council in its 48th meeting held on 17th December, 2022
  • E-mail from TRACES to deductors explaining the e-verification scheme. What to do?
  • Module wise new functionalities deployed on the GST Portal for taxpayers – December 2022

Categories

  • Budget News
  • Business & Other News
  • Case Laws
  • GST news
  • Income Tax News
  • News

Site menu

  • Home
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST Registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
Taxontips

TaxOnTips provides you all tax related solutions in easy way and update you with its regular updates & notifications Visit us for details.
We are based in Jaipur, India

© 2019-2021 Taxontips.com - Tax assistance at your Fingertips

No Result
View All Result
  • Login/Signup
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
  • Ask an expert/ Talk to an expert
  • Privacy Policy
  • Terms of use

© 2019-2021 Taxontips.com - Tax assistance at your Fingertips

Login to your account below

Forgotten Password? Sign Up

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Book Phone consultation with expert

Sitting home or at your office and don't have time to visit CA's office or don't know where to consult CA. Book your consultation with an expert practicing Chartered Accountant and get your query solved.

Book a phone consultation for 30 minutes with our expert at a very basic cost.

Book consultation

No thanks, I'm not interested!

ITR 1 to 7 now available for FY 2021-22!!File your ITR with an experienced Chartered Accountant

Now File your Income Tax return for F.Y. 2021-22 with an Experienced Practicing Chartered Accountant and not just with any person like other websites offer. Return filing starts at Rs. 500/-

Book ITR filing with Expert

Never see this message again.

Subscribe for Latest Tax Updates
You name
Yourname@email.com

Never see this message again.