GSTJIT ADVISORY

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. 🔍 Key Difference in Simple Terms: 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 📧 gstjitadvisory@gmail.com 🔗 LinkedIn: Sujit Boliar Hashtags #IncomeTax #TDS #TCS #Section194Q #Section206C #TaxCompliance #GSTJITAdviso...

📘 Post #27: Section 194C – TDS on Contractor Payments (Explained Simply) 💸 Section 194C – TDS on Payments to Contractors ⚖️ What is Section 194C? Section 194C of the Income Tax Act deals with TDS on payments made to contractors and sub-contractors for carrying out any work, including supply of labour. 🏢 Who Has to Deduct TDS? ✔️ Individual / HUF (subject to tax audit) ✔️ Company ✔️ Partnership Firm ✔️ LLP ✔️ Trust / AOP / BOI 👷 What Type of Work Is Covered? Advertising Construction & repairs Transport services Job work / fabrication Catering Labour contracts 💰 TDS Rates under Section 194C • 1% – Payment to Individual / HUF contractor • 2% – Payment to other contractors (Company / Firm) 📌 No surcharge or cess applicable 📉 Threshold Limits TDS applicable if: Single payment exceeds ₹30,000 , OR Total payments in a year exceed ₹1,00,000 📅 Due Dates TDS deposit → 7th of next month March payment → 30th April TDS Return → Form 26Q (Quarterly) 📘 In Simple Words “If you pay a co...