CBDT issues clarification on Section 194Q

 

1. TDS under section 194Q on *net of GST* if charged separately. However for section 206C(1H) GST is to be included.


2. Transactions on *recognised exchanges* exempted from 194Q. 


3. *Hierarchy of section 194-O, 194Q and Section 206C(1H) clarified*. If section 194-O is applicable to a transaction then 194Q and 206C(1H) will not apply. If 194Q is applicable then section 206C(1H) shall not be applicable. If section 194-O and 194Q are not applicable section 206C(1H) will be applicable.


4. Turnover/ Gross receipts of 10 crore of buyer for applicability of this section 194Q will mean *Turnover/ Gross receipts in business only*. Hence receipts by way of rent, interest , capital gain etc if not considered as business income are not to be included. 


5. Further provision of section 194Q not to apply in *first year of an entity* as no turnover / gross receipts in preceding year since entity was not in existence.

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