TDS and TCS Ready Recokoner – Recent Amendments

INTRODUCTION

The recent amendments together with some earlier amendments have brought about confusion as regards its implications. A brief note in a summary form is prepared for a clear understanding of such provisions.

AMENDMENTS

A. Section 194Q- TDS by Buyer of Goods.

1. TDS is to be deducted by buyer of any Goods w.e.f 01.07.2021.

2. Turnover of the buyer  from business should be more than 10 crores in the immediately preceding year

3. TDS to be deducted in where payment by the buyer to the seller is more than 50 lacs during the year.

4. Rate of TDS 0.1% on amount exceeding Rs.50 lacs during the year, 5% where the seller has no pan.

5. TDS is to be deducted on gross payments exceeding Rs.50 lacs during the year

6. TDS is to be deducted in cases covered under section 206(1 H)

B. Section 206C(1H) – TCS By Seller of Goods w.e.f 01.10.2020.

1. TCS to be Collected by Seller of any Goods

2. Turnover of the seller from business should be more than 10 crores in the immediately preceding year

3. TCS to be Collected where receipts by the seller from the buyer is more than 50 lacs during the year.

4. Rate of TCS 0.1% on amount exceeding Rs.50 lacs during the year

5. TCS is to be Collected on gross receipts exceeding Rs.50 lacs during the year

6. TCS is not to be collected in cases covered under section 194Q

C. Section 206AA – Rate of TDS where PAN is not provided by Deductees Higher of the following : –

1. TDS Rates as prescribed

2. TDS Rates in Force

3. 20% in all cases, 5% in cases of TDS under section 194Q.

D. Section 206AB – Rate of TDS where Income Tax return is not filed for last 2 years by the Deductees and TDS during the last 2 years is Rs.50000 or more in each year wef 01.07.21.(Obtain declaration confirming filing of returns) Higher of the following : –

1. Twice the TDS Rates as prescribed

2. 5%

CONCLUSION

The above summarized picture would bring more clarity on the amended provisions to all those concerned.

CA Kusum Agrawal .Cuttack.9438034027 Email : agrawalkusumca@gmail.com