A comparative Chart on Section 194-Q vis a vis Section 206C(1H)

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A comparative Chart on Section 194-Q vis a vis Section 206C(1H)

 

 

Applicability Sec. 194-Q Sec. 206C(1H)
Applicability is for Deduction of Tax Collection of Tax
Who is required to comply

(Only on Goods, Services are excluded from both the sections)

Buyer of Goods Seller of Goods
Threshold limit of Turnover All such Buyers whose turnover is more than Rs. 10 Crs. during the immediately preceding year All those sellers whose turnover is more than 10 Cr during the immediately preceding year
Effective Date 01-07-2021 01-10-2020
Threshold Limit of the purchase or Receipt during the year Rs. 50 Lacs of purchase Rs. 50 Lacs of Receipt
Rate of Tax if the PAN is furnished 0.1% on amount exceeding Rs. 50 Lacs 0.1% on amount exceeding Rs. 50 Lacs
Rate of Tax if PAN is not furnished 5% on amount exceeding Rs. 50 Lacs 1% on amount exceeding Rs. 50 Lacs
Trigger Point i.e., Timing of applicability Payment or credit, which is earlier.

It means that if the payment is done in advance against the purchase, then TDS would be applicable on such advance payment.

At the time of receipt of consideration.

If the payment is received in advance against sale, then TCS would be required on such advance payment received as well.

Due date of Payment of TDS/TCS & Filing of Quarterely Return:

 (a) Due date to deposit tax

 

(b) Form to be filed

 

(c) Certificate to be issued

7th day of subsequent month for April to February and 30thApril for March

Form No. 26Q

 

Form No. 16A to seller

7th day of subsequent month

 

Form No. 27EQ

 

Form No. 27D to buyer

1 Comment

  1. June 30, 2021
    Selvamuthukumarasamy

    I am a tax practitioner, since 1987

    Reply

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