Article explains Provisions of Section 194Q and 206C(1H) of Income Tax Act, 1961 in Tabular Format. Its Explains Applicability of TDS from TDS under Section 194Q will be applicable and Date since TCS under Section 206C(1H) is already applicable. Article explains provision of both these section as comparative analysis for easy understanding of readers.
Section 194Q and 206C(1H)
| Section 194Q | Section 206C(1H) |
| Applicable from 01st July 2021 | Applicable from 01st October 2020 |
| Buyer is liable to deduct TDS on purchase of Goods. | Seller is liable to deduct TCS on sale of Goods. |
| Not Applicable on purchasing Goods from Non Resident Seller. | Not Applicable on
1) Exported Goods 2) Alcoholic Liquor for human consumption 3) Tendu leaves 4) Timber obtained under a forest lease 5) Timber obtained by any mode other than under a forest lease 6) Any other forest produce not being timber or tendu leaves 7) Scrap 8) Minerals, being coal or lignite or iron ore 9) sale of a motor vehicle of the value exceeding ten lakh rupees, 10) Authorised dealer, who receives an amount, for remittance out of India from a buyer under the Liberalised Remittance Scheme of the Reserve |
| Applies only when the transaction Value or Aggregate of Transaction values of a supplier exceeds Rs. 50 Lakhs.
# Applicability should be checked for every supplier separately. |
Applies only when the transaction Value or Aggregate of Transaction values from a customer exceeds Rs. 50 Lakhs.
# Applicability should be checked for each customer separately. |
| TDS shall be deducted 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. | TCS shall be deducted at the time of receipt of such amount from the buyer. |
| TDS Rate is 0.1% of such sum exceeding Rs. 50 Lakhs I.e, TDS will apply only on excess amount.# Inclusion/Exclusion of GST is not yet clarified By CBDT.If PAN is not provided to buyer, then TDS rate will be 5%. |
TCS Rate is 0.1% of such sum exceeding Rs. 50 Lakhs including GST.
TCS will apply only on excess amount. If PAN & Aadhaar not provided to seller, then TCS rate will be 1%. |
| Buyer Means a person whose total sales, gross receipts or turnover from the business carried on by him exceed Rs. 10 Crore during the immediately preceding financial Year. | Buyer” means a person who purchases any goods, but does not include,—
1) Central Government 2) State Government 3) an embassy 4) A High Commission, legation, commission, consulate and the trade representation of a foreign State 5) Local authority 6) Importer. Seller Means a person whose total sales, gross receipts or turnover from the business carried on by him exceed Rs. 10 Crore during the immediately preceding financial Year. |
| The Provision shall not apply when :-
1) TDS is deductible under any of the 2) TCS is collected under the provisions of Section 206C except for Section 206C(1H). That means section 194Q prevails over section 206C(1H) |
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