194Q & 206C(1H) APPLICABILITY IN DETAIL 194Q - Applicable only if your Turnover of PY crossed 10 crore - JoNty CONDITION TO CHECK EVERY MONTH END FOR DECIDE ‘ONLY FOR “GOODS" PURCHASES Jconpimion = whether Purchases from the Creditor crossed 50 lac Ir YES, Please deduct 0.1% ON BASIC VALUE and pay challan before 7th of next month. Also show in FORM 26Q. Filet before 31st IF NO, don’t do anything Jat year end, check once again this in march end 206C(1H) Applicable only if your Turnover of PY crossed 10 crore - JONLY 2 CONDITIONS TO CHECK EVERY MONTH END FOR DECIDE ‘ONLY FOR "GOODS" SALES JCONDITION 1 = whether collection from the debtor crossed 50 lac Jconpimion 2 = and that debtor has not deducted TDS u/s 194, It BOTH CONDITIONS FOLLOWED ,, Please collect 0.1% ON COLLECTION RECEIVED and pay challan before 7th of next month . Also show in FORM 27€Q.and file before 15th IF NO, don’t do anything at year end, check once again this in march end (Other comparison 194Q, 206C(1H) 1. Whom Applicable Purchaser seller 2. when Applicable as Above Jac above 3. On which Amount Purchases (Basic Values) [Sales Consideration Received Including GST Amt. 4, Adjustments Deduct Purchase return, eee henat No adjustment of Sale return , Net off , Purchases , GST Payment or Credit. W 5. Advance payment received ves Applicable always Eis Earlier 6. What if Not followed Disallowance at 30% — [No disallowance 1. If TDS deduction 7. Not applicable required in any other |. If TCS required to deduct in any other section 2 f seller charges TCs 2. IF buyer is going to deduct TOs if this sales is entirely Exempt income in hands of seller export sales 4. if purchases from Non Resident it, for any reason, tax has been collected by the seller under sub-section (1H) of section 206C ofthe Act, before the buyer could deduct tax under section 194-0 of the Act on the same transaction, such transaction would not be subjected to tax deduction again by the buyer. This concession is provided to remove difficulty, since tax rate of deduction and collection are| same in section 1940 and subsection (1H) of section 206C of the Act. If transaction isn purview of both Sec 1940, and [206C(1H) its advised to apply sec 1940 on the transaction. fe Interplay at last, with the introduction of TDS u/s 1940, TCS Provisions u/s 206C(1H) would largely become inapplicable and would apply majorly only on transactions where the buyer's turnover is less than Rs.10 crores and buyer is not liable to TDS (or) where the buyer was liable to deduct tax but has not deducted it