Section 194Q vs Section 206C(1H)

Section 194Q vs Section 206C(1H)

Confused between TDS and TCS on purchase of goods? You’re not alone.

With high-value transactions becoming common, understanding who deducts what is critical to avoid notices, interest & penalties.

1. Section 194Q (TDS on Purchase of Goods)

▪ Applicable to buyer

▪ Turnover > ₹10 Cr in preceding FY

▪ TDS @ 0.1%

▪ Applicable when purchase from a seller > ₹50 Lakhs

2. Section 206C(1H) (TCS on Sale of Goods)

▪ Applicable to seller

▪ Turnover > ₹10 Cr in preceding FY

▪ TCS @ 0.1%

▪ Collected when sale to a buyer > ₹50 Lakhs

⚠ Important Rule:

👉 If Section 194Q applies, then 206C(1H) will NOT apply.

📌 Proper identification = Zero compliance risk.

📩 Need help determining applicability for your business?

GSTJIT Advisory is here to assist.

—

Sujit Boliar

📞 90642 63759

🔗 LinkedIn: Sujit Boliar

#IncomeTax #TDS #TCS #Section194Q #Section206C #TaxCompliance #GSTJITAdvisory #TaxAwareness #IndianTax

GSTJIT ADVISORY