TDS on Purchase u/s 194Q and TCS on Sale of Goods u/s 206C(1H) are most important sections under Income Tax Act applicable w.e.f 2021
Read in Detail:
TDS on Purchase u/s 194Q: https://taxupdates.cagurujiclasses.com/tds-on-purchase-section-194q/
TCS on Sale of Goods u/s 206C (1H): https://taxupdates.cagurujiclasses.com/tcs-on-sale-of-goods-section-206c1h/
Comparison:
Comparison of TDS on Purchase of Goods (Section 194Q) and TDS on Sale of Goods (Section 206C) in a table format:
| Aspect | TDS on Purchase of Goods (Section 194Q) | TDS on Sale of Goods (Section 206C) |
|---|---|---|
| Applicability | Buyer’s turnover > Rs. 10 crores | Seller’s turnover > Rs. 10 crores |
| Scope | Purchase of goods only | Sale of goods, including specified transactions (e.g., scrap, minerals) |
| TDS Deductor | Buyer | Seller |
| TDS Collection | At the time of credit/payment | At the time of sale |
| TDS Rate | 0.1% of purchase consideration exceeding Rs. 50 lakhs | 0.1% of Sale consideration exceeding Rs. 50 lakhs |
| Exclusions | Specific exclusions apply (e.g., transactions already covered under other TDS provisions) | Specific exclusions apply (e.g., transactions where the buyer provides Form 27C, transactions covered under other TDS provisions) |
| Objective | Buyer deducts TDS on significant purchases of goods | Seller collects TDS on sale of certain goods |
| Compliance Burden | On the buyer | On the seller |
| Purpose | Widening tax net, enhancing tax compliance | Collecting tax at the source from buyers on certain goods |
