| Question And Answer | |
|---|---|
| Subject: | TCS Liability u/s 206C(1)(vii) |
| Category: | Income-Tax |
| Querist: | Nikita Mishra |
| Answered by: | Law Intern |
| Tags: | Section 194Q(5), section 206C(1H) |
| Date: | October 9, 2025 |
During the F.Y 2024-25 the assessee sold the coal and on that TCS liability arises u/s 206C(1)(vii), which reads as under:-
“(vii) Minerals, being coal or lignite or iron ore – One per cent:”
TDS u/s 194Q was done by purchaser
Query :
Whether in view of the fact that purchaser has made TDS u/s 194Q than the seller is not liable for TCS u/s 206C(1)(vii) ?
Logically, it should be so. There is a clarification u/s 194Q(5) which exempts the seller from collecting TCS u/s 206C(1H) if TDS is deducted under section 194Q. However, there is no explicit provision that exempts the seller from collecting TCS under section 206C(1)(vii) when TDS is deducted under section 194Q.
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