TCS and TDS -206(1H) Vs 194Q

 

TDS u/ s 194 Q has been  introduced by the GOI in Budget 2021 and the same will be applicable from 1St July 2021.

This  is additional Compliance we have to comply w.e.f. 01/07/2021.

206C(1H)- TCS is already implemented  w.e.f 01/10/2020.

Please refer the below table for  Difference between 206C(1H) Vs 194Q for easy reference.



Section 206C(1H) Vs 194Q

 

 

 Income Tax Section

S.No

Particulars

206C(1H)

194Q

1

TCS/TDS

Tax to becollected  (TCS)

Tax to be deducted  ( TDS)

2

Applicabile to Whom

Seller

Buyer

3

Opposite Party

Resident Buyer

Resident seller

4

With Effect From

01-10-2020

01-07-2021

5

Conditions

a.Turnover/Gross Receipts/Sales from the business of SELLER should exceed Rs.10cr during previous year (Excluding GST)

b.Sale consideration received exceeds Rs.50Lakhs in P.Y.

a.Turnover/Gross Receipts/Sales from the business of BUYER should exceed Rs.10cr during previous year (Excluding GST)

b.Purchase of goods of aggregate value exceeding Rs.50Lakhs in P.Y.

6

Point of Taxation (Timing )

At the time of receipt

Payment or credit, whichever is earlier

7

Impact on Advances

TCS shall be collected on advance receipts

TDS shall be deducted on advance payments made

8

Rate of TDS/TCS

0.1 % (0.075 % for FY 2020-21

0.1%

9

PAN not available- Rate of TDS

1%

5%

10

On which amount

On amount exceeding Rs.50 Lakhs

On amount exceeding Rs.50 Lakhs

11

Not applicable to

Transactions on which TDS/TCS is applicable under provisions of the act and the samw has been complied with.(i.e  In a simple where TDS has been deducted u/s 194Q, this section will not apply)

a.Transactions on which TDS is applicable under provisions of the IT act.
b. Transactions on which TCS is applicable under section 206C other than 206C(1H)

12

Exclusions

If the Buyer is-
a.Importer of goods
b.Central/State Government, LocalAuthority.
c.An embassy. High Commission, legation, commission, consulate and trade representation of a foreign state

Yet to be notified by the government

13

TAN Requirement

YES

YES

14

When to Deposit / Collect

Tax so Collected shall be deposited with government by 7th day of Subsequent month

Tax so deducted shall be deposited with government by 7th day of Subsequent month

15

Quarterly statement to be filed

27EQ

26Q

16

Certificate to be issued to Seller /Buyer

Form 27D

Form 16A





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