This document summarizes the new TDS and TCS provisions introduced under sections 194Q and 206C(1H) respectively. It provides details on who is required to deduct/collect (entities with turnover over Rs. 10 crores), calculation of amount (0.1% of transaction value excluding/including GST), due dates of payment and return filing (monthly and quarterly), and exceptions when TDS/TCS is not applicable. It also discusses section 206AB which provides for higher rate of TDS (twice the specified rate or 5%) in case of non-filers of return.

1. CA SWETA JAIN
CA PRAKHAR JAIN
new tds u/s 194q

2. TDS ON
PURCHASE
OF GOODS
TCS ON
SALE
OF GOODS
194q 206C(1H)
D E D U C T O N
C R E D I T / P A Y M E N T
C O L L E C T W I T H
I N V O I C E / R E C E I P T

3. Deducting TDS on Purchase u/s 194Q
Collecting TCS on Sales u/s 206C(1H)
For both the sections, you are "BIG" if -
Your Turnover in Previous FY is > 10 crore
(excluding GST)
Only then you have to think about -
And Filing of the TDS/ TCS returns
THE "BIG" BURDENED TO COMPLY
TDS &
TCS
ONLY

4. If your Purchases of Goods from a Party
exceeds 50 lacs in a FY (Including GST)
let's break it down
Only applicable when we have "significant" transactions with someone
BOTH NOT applicable when TDS/ TCS TO BE DEDUCTED UNDER ANY OTHER SECTION
TCS U/S 206c(1h) NOT applicable when TDS U/S 194Q TO BE DEDUCTED (TDS Overrides)
& If your Sales of Goods to a Party
exceeds 50 lacs in a FY (Including GST)

5. Elements of compliance
CALCULATION
OF
AMOUNT
WHEN
TO
DEDUCT
DUE DATE
OF
PAYMENT
DUE DATE
OF
RETURNS
0.1% of Amount
excluding GST
(Over and above
50 lacs)
At the time of
Credit or
Payment
whichever is
earlier
MONTHLY
April-Feb = 7th
of Next month
March = 30th
April
QUARTERLY
Jun, Sep, Dec =
31st of Next
month
March = 31st
May

6. Elements of compliance
CALCULATION
OF
AMOUNT
WHEN
TO
COLLECT
DUE DATE
OF
PAYMENT
DUE DATE
OF
RETURNS
0.1% of Amount
including GST
(Over and above
50 lacs)
At the time of
Receipt
(For ease, may
collect with
Invoice itself)
MONTHLY
7th of Next
month
(No relaxation
for March)
QUARTERLY
Jun, Sep, Dec =
15th of Next
month
March = 15th
May

7. Not filed ITR for immediately
two preceding FYs (Due Date
passed) and,
TDS + TCS in both those year
exceeds 50 thousand
Payee is Non Filer of Return
Exclude Non-Resident who does
not have a permanent
establishment in India
TCS not applicable -
When buyer is Central Government, a State Government, an embassy, a High
Commission, legation, commission, consulate and the trade representation of a
foreign State, or a local authority as defined in the Explanation to Section 10(20)
When Buyer is Importer of Goods (We are exporters)
When Buyer is any other person as may be notified
TDS not applicable -
When the Seller is non-resident, or the Buyer is a person as may be notified
SECTION 206AB
Where TDS under Sections
192, 192A, 194B, 194BB,
194LBC or 194N
Twice Specified Rate
Twice the Rate in force
5 percent
Higher of -
HIGHER RATE of
tds IN CERTAIN
CASES
condition EXCEPTIONS
rate of tds
TCS/tds NOT
APPLICABLE IN
CERTAIN CASES

8. Thank you!