NRSR & CO

10/04/2022

04/11/2021

Happy Deepawali 🪔

01/07/2021

We are going to discuss the applicability of section 194Q and 206C(1H) in brief.

If your turnover is less than 10 crores in the financial year 2020-2021 then this section is not applicable to you. If more than that, we simplified the section for your application. Note that these provisions are applicable to Goods only. If you are a service provider, then you need not worry, just relax.



A. Section 194-Q Deduction of tax at source on payment of certain sum for purchase of goods. (Applicable on your purchases).

Just go through your purchase register on a financial year basis. In 2020-21 or in 2021-22 if your purchase from a seller is more than 50 lakhs , you have to deduct TDS at 0.1% on total purchase value applicable from July.

Compliance part:

Get Pan copy of the seller

Deduct 0.1% TDS

Pay on or before 7th of the next month

File quarterly return

194Q overrides section 206C(1H). So if for a transaction both TDS and TCS hits, then TDS prevails. i.e TDS has to be done.



B. Section 206C(1H), TCS on Sales (Applicable on your sales)

Just go through your sales register on a financial year basis. If in 2020-21 or in 2021-22 your sales to a buyer is more than 50 lakhs , you have to collect TCS at 0.1%.



Compliance part:

Get Pan copy of the buyer

Collect 0.1% TCS

Pay on or before 7th of the next month

File quarterly return



TDS & TCS Complications in 3 different case: (Assuming your turnover is more than 10 crore:)

Case A. Your seller's turnover is also more than 10 crore and his sales to you is more than 50L.: You have to Deduct TDS , Ask them not to collect TCS.

Because as per section 194Q(5) , section 194Q is applicable on 206C(1H) transactions. And 206C(1) proviso says “Provided further that the provisions of this subsection shall not apply, if the buyer is liable to deduct tax at source under any other provision of this Act on the goods purchased by him from the seller and has deducted such amount.”

Case B. Your seller's turnover is less than 10 crore but his sales to you is more than 50L.. :You have to Deduct TDS



Case C. Your sales to your buyer is more than 50l. : You have to Collect TCS.

09/08/2020

“A big business starts small”. Yes, all the leading businesses in this world once started it small and humble. But being a common man, we are hesitant to become entrepreneur because of various risks involved with it. But there is no need to compromise on our dreams of becoming an entrepreneur because there is something called as MSMED Act 2006 of the Parliament of India act to all small-scale entrepreneurs. [ 863 more words ]

“A big business starts small”. Yes, all the leading businesses in this world once started it small and humble. But being a common man, we are hesitant to become entrepreneur because of various risk…

19/07/2020

Late fees u/s 234F of Income Tax Act, 1961 Section 234F has been inserted in Income Tax Act, 1961 for levy of compulsory fee/penalty on the filing of return after the due date. This fee is applicable for people who has Gross total income more than 2.5 lakhs. Point worth consideration is, If your gross total income is less than 2.5 lakhs, then there is no 234f liability. [ 330 more words ]

Late fees u/s 234F of Income Tax Act, 1961 Section 234F has been inserted in Income Tax Act, 1961 for levy of compulsory fee/penalty on the filing of return after the due date. This fee is applicab…

28/06/2020

Vacancy for one articled assistant. Interest can contact.

27/06/2020

Responsibilities of a business man after he starts his business.
Check below link to know more:

Maintaining the books of account You should wisely choose the method of maintaining books of accounts. In this computerized era, it’s better to opt robust computerized bookkeeping. Various ER…

21/06/2020

Check post on Section 87A of Income Tax act by CA Madhusudan G Kotian.

Section 87A rebate is one of the benefits given by the government for the taxpayers. If your ‘total income’ does not exceed Rs.5 lakhs then you are not required to pay any tax. (Total Income = Gros…

12/06/2020

GST filling due date not extended..!!!
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Whenever there are exceptional situations, the GST return filing due dates will be extended. Due to COVID 19 outbreak Central govt. has ordered the lockdown of the whole country. In this crucial si…

12/06/2020

115BAC : New Income Tax Scheme
Please check below link for updates:

New Optional Income Tax Slab (115BAC) Is the new slab mandatory?No, this is an optional scheme. Previous income tax slab also exists. This slab is available for you as an optional scheme for the fi…