Section 194Q

Section 194Q Buyer’s obligation for TDS on Purchase of Goods

Income Tax - On 1/10/2020, new section 206C(1H) relating to TCS on sale of goods was introduced. It states that, the seller at the time of sale of goods of the value aggregating to Rupees Fifty Lakhs or more in previous year should deducted TCS. Further the following year a new section was introduced in the Finance Bill […]...

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Deciphering Section 194Q TDS for a Common Man

Income Tax - Section 194Q brings further complications to the compliance of various provisions of law already existing and it will certainly be felt by the business circle as being contrary to the ‘Ease of Doing Business’....

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Demystifying Section 206C(1H) And Section 194Q

Income Tax - TCS ON SALE OF GOODS UNDER SECTION-206C(1H): The Finance Act,2020 had inserted a new section 206C(1H) with effect from 1st October 2020.It applies to any seller who receives any consideration for sale of any goods of the value exceeding rupees fifty lakhs in any previous year. The seller shall collect from the buyer, a sum […]...

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Interplay of Section 194O, Section 194Q & Section 206C(1H)

Income Tax - Circular No.13 dated 30th June 2021 issued by Central Board of Direct Taxes gave the Guidelines under Section 194Q of Income Tax Act, 1961. The CBDT Circular also covers the linkage between Sections 194Q, 194-O and 206C(1H). 194-O is tax deduction at source by ecommerce operator, the rate is 1.0% and it has come into […]...

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Analysis of Section 194Q & Section 206C(1H) of Income Tax Act, 1961

Income Tax - Analysis of Section 194Q and Section 206C(1H) of Income Tax Act, 1961 In Budget’2021 our honorable Finance Minister introduced Section 194Q, requiring deduction of TDS on purchase of Goods (w.e.f. 01st July, 2021). For the very first time in India such kind of section has been introduced under Direct Tax Law. The Section has been [&hell...

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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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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"

Section 194Q Buyer’s obligation for TDS on Purchase of Goods

On 1/10/2020, new section 206C(1H) relating to TCS on sale of goods was introduced. It states that, the seller at the time of sale of goods of the value aggregating to Rupees Fifty Lakhs or more in previous year should deducted TCS. Further the following year a new section was introduced in the Finance Bill […]...

Read More
Posted Under: Income Tax |

Deciphering Section 194Q TDS for a Common Man

Section 194Q brings further complications to the compliance of various provisions of law already existing and it will certainly be felt by the business circle as being contrary to the ‘Ease of Doing Business’....

Read More
Posted Under: Income Tax |

Demystifying Section 206C(1H) And Section 194Q

TCS ON SALE OF GOODS UNDER SECTION-206C(1H): The Finance Act,2020 had inserted a new section 206C(1H) with effect from 1st October 2020.It applies to any seller who receives any consideration for sale of any goods of the value exceeding rupees fifty lakhs in any previous year. The seller shall collect from the buyer, a sum […]...

Read More
Posted Under: Income Tax |

Interplay of Section 194O, Section 194Q & Section 206C(1H)

Circular No.13 dated 30th June 2021 issued by Central Board of Direct Taxes gave the Guidelines under Section 194Q of Income Tax Act, 1961. The CBDT Circular also covers the linkage between Sections 194Q, 194-O and 206C(1H). 194-O is tax deduction at source by ecommerce operator, the rate is 1.0% and it has come into […]...

Read More
Posted Under: Income Tax |

Analysis of Section 194Q & Section 206C(1H) of Income Tax Act, 1961

Analysis of Section 194Q and Section 206C(1H) of Income Tax Act, 1961 In Budget’2021 our honorable Finance Minister introduced Section 194Q, requiring deduction of TDS on purchase of Goods (w.e.f. 01st July, 2021). For the very first time in India such kind of section has been introduced under Direct Tax Law. The Section has been [&hell...

Read More
Posted Under: Income Tax |

Brief Analysis of TDS under Section 194Q

As per Section 194Q the buyer, whose turnover or gross receipts or total sales is exceeding Rs. 10 crores in a financial year immediately preceding the relevant financial year, shall be liable to deduct tax at rate of 0.1% on the value exceeding Rs. 50 lakhs at the time of: – Section 194Q was introduced […]...

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Posted Under: Income Tax |

TAX Deducted on Source- Provisions for TDS on Purchase of Goods

TDS- Tax Deducted at Source, is deducted for the payment that exceeds a specified due limit. However, this was the case earlier. But now, from 1st July 2021, apart from the current scope of TDS deduction applicable on the notified nature of payment of expenses, businesses are required to deduct TDS on purchase of goods […]...

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Posted Under: Income Tax |

PPT on Section 194Q and Section 206C(1H)

A new section 194Q (Deduction of tax at source on payment of certain sum for purchase of goods) is inserted by Finance Act – 2021 effective from 01/07/2021. This new section 194Q has given rise to the question “Whether TCS u/s 206C (1H) of Income Tax is to be collected on receipt of sales consideration […]...

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Posted Under: Income Tax |

Format of Declaration of filing of Income Tax Return for last two years

(To be given on letter head) Declaration in respect of filing of Income Tax Returns as required by Income Tax Act, 1961 as amended by Finance Act 2021 Date: To (NAME OF THE BUYER/ SERVICE PROVIDER AND ADDRESS) PAN No : XXXXXXXXXX(BUYER) ——————————- Sub :- Declaration in respect o...

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Posted Under: Income Tax |

Problems Still Exist in 194Q & 206C(1H) & Suggestions to Streamline

Recent CBDT circular on Section 206C(1H) and Section 194Q has created  more confusion. There are still anomalies. I have tried to collect all Problems related to drafting of these sections & Problems related to implementing Section 206C(1H) & Section 194Q. Also check suggestions. I have suggested 3 measures which can streamline s...

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Posted Under: Income Tax |

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