2 Section 194Q

Section 194Q

TDS applicability on purchase of goods under section 194Q

Income Tax - Firstly, vide Finance Act, 2020, sub-section (1H) was inserted into section 206C of the Income Tax Act. As per section 206C(1H), the seller of the goods receiving the consideration of value exceeding INR 50 Lakhs was required to collect TCS @ 0.1%. The provisions are effective from 1st October 2020. Later on the similar lines, […]...

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Application of section 194Q & Section 206C(1H) of Income Tax act, 1961

Income Tax - Chapter XVIIB of the Act relates to deduction of tax at source. The provisions of this chapter provide for TDS on various payments at rates contained therein. It is proposed to provide for TDS by person responsible for paying any sum to any resident for purchase of goods. The rate of TDS is kept very […]...

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Request to clarify Section 194Q TDS on agricultural produce traded through APMC

Income Tax - Applicability of provisions of Section 194Q of the I.T. Act,1961-For transactions in agricultural produce of farmers traded through Commission Agents of recognized Agricultural Produce Market Committee (APMC)-Request to issue guidelines in order to remove genuine hardship and practical difficulties faced by the Commission Agents and Trade...

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TDS under Section 194Q : An Analysis

Income Tax - The Finance Act 2020 inserted Sub Section (1H) in Section 206C to provide for tax collection by a seller from the amount received as consideration for the sale of goods if it exceeds Rs. 50.00 Lacs in any previous year. On the Similar lines the Finance Act 2021 inserted a new section 194Q to provide […]...

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TDS and TCS under Income Tax- Section 194Q & Section 206(1H)

Income Tax - TDS and TCS are the government’s most important sources of revenue. It’s also critical for businesses to pay their taxes on time to avoid penalties and remain compliant. With effect from 01/07/2021, Finance Act of 2021 inserted section 194Q to provide a deduction of tax on certain purchases. Section 194Q of the Income tax Act ...

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HC admit Pleas against Oil Companies Circular mandating to pay without deduction of Section 194Q TDS

Petroleum Traders Welfare and Legal Service Society Vs Union of India (Kerala High Court) - According to the learned counsel for the petitioner, the Income Tax Department has clarified the newly introduced provision of Section 194Q of the Act by their communication at Ext.P7 which unequivocally states that buyers are supposed to deduct tax at source within the sale consideration payable to...

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Guideline on TDS/TCS under Section 194O, section 194Q & Section 206C

Circular No. 20/2021-Income Tax - (25/11/2021) - Guidelines under sub-section (4) of section 194-0, sub-section (3) of section 194Q and sub­section (1-I) of section 206C of the Income-tax Act, 1961...

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No Section 194Q TDS on transfer of goods by Air India to holding company

Notification No. 107/2021-Income Tax [S.O. 3680(E)] - (10/09/2021) - Central Government hereby specifies that no TDS shall be deducted under section 194Q in case of transfer of goods by Air India Limited  to Air India Assets Holding Limited under a plan approved by the Central Government. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) Ne...

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Guidelines under section 194Q of Income-tax Act, 1961

Circular No. 13 of 2021-Income Tax - (30/06/2021) - CBDT releases Guidelines under section 194Q of Income-tax Act, 1961 vide Circular No. 13 of 2021 | Dated: 30th June, 2021. Section 194Q takes effect from 1st day of July, 2021. F. No. 370142/26/2021-TPL Government of India Ministry of Finance Department of Revenue (Central Board of Direct Taxes) ***...

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Recent Posts in "Section 194Q"

TDS applicability on purchase of goods under section 194Q

Firstly, vide Finance Act, 2020, sub-section (1H) was inserted into section 206C of the Income Tax Act. As per section 206C(1H), the seller of the goods receiving the consideration of value exceeding INR 50 Lakhs was required to collect TCS @ 0.1%. The provisions are effective from 1st October 2020. Later on the similar lines, […]...

Read More
Posted Under: Income Tax | ,

Application of section 194Q & Section 206C(1H) of Income Tax act, 1961

Chapter XVIIB of the Act relates to deduction of tax at source. The provisions of this chapter provide for TDS on various payments at rates contained therein. It is proposed to provide for TDS by person responsible for paying any sum to any resident for purchase of goods. The rate of TDS is kept very […]...

Read More
Posted Under: Income Tax |

Request to clarify Section 194Q TDS on agricultural produce traded through APMC

Applicability of provisions of Section 194Q of the I.T. Act,1961-For transactions in agricultural produce of farmers traded through Commission Agents of recognized Agricultural Produce Market Committee (APMC)-Request to issue guidelines in order to remove genuine hardship and practical difficulties faced by the Commission Agents and Trade...

Read More
Posted Under: Income Tax | ,

TDS under Section 194Q : An Analysis

The Finance Act 2020 inserted Sub Section (1H) in Section 206C to provide for tax collection by a seller from the amount received as consideration for the sale of goods if it exceeds Rs. 50.00 Lacs in any previous year. On the Similar lines the Finance Act 2021 inserted a new section 194Q to provide […]...

Read More
Posted Under: Income Tax |

TDS and TCS under Income Tax- Section 194Q & Section 206(1H)

TDS and TCS are the government’s most important sources of revenue. It’s also critical for businesses to pay their taxes on time to avoid penalties and remain compliant. With effect from 01/07/2021, Finance Act of 2021 inserted section 194Q to provide a deduction of tax on certain purchases. Section 194Q of the Income tax Act ...

Read More
Posted Under: Income Tax |

TDS Rate Chart for FY 2022-23 / AY 2023-24 – Updated

Income Tax TDS Rate Chart for for Financial Year (FY) 2022-23 / Assessment Year (AY) 2023-24 The term ‘TDS’ refers to ‘Tax Deduction at source’. It is a mechanism wherein a person responsible to pay a sum of specified nature shall deduct an amount towards TDS and pay it to the credit of Central Government. […]...

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Posted Under: Income Tax | ,

TCS on sale or TDS on purchase conundrum

Regarding applicability of provisions of section 194Q and 206C(1H) of Income Tax Act, 1961 w.e.f 01.04.2022. 206C(1H): Every person, being a seller, who receives any amount as consideration for sale of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year, other than the goods being exported [&...

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Posted Under: Income Tax |

TDS on purchase of Goods- Section 194Q

It would be the first moment in the history of income tax that TDS is levied on the procurement of products. Section 194Q of the Act would engage numerous transactions encompassing the acquisition of products under this umbrella. In the Finance Act of 2021, the government added Section 194Q to the Income Tax Act of […]...

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Posted Under: Income Tax |

Recent guidelines under Section 194O(4); Section 194Q(3) and Section 206C(1H)

Recently, vide circular no. 20 of 2021 dated 25th November 2021, the Central Board of Direct Taxes has come up with various important clarifications on number of issues relating to provisions of section 194O(4); section 194Q(3) and section 206C(1H). The same is analyzed and explained in the current article. Briefs of all the three relevan...

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Posted Under: Income Tax |

Guideline on TDS/TCS under Section 194O, section 194Q & Section 206C

Circular No. 20/2021-Income Tax 25/11/2021

Guidelines under sub-section (4) of section 194-0, sub-section (3) of section 194Q and sub­section (1-I) of section 206C of the Income-tax Act, 1961...

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