| Question And Answer | |
|---|---|
| Subject: | TDS under section 194H &194Q |
| Category: | Income-Tax |
| Querist: | Sachin Dinkar More |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | Commission, sale price, Tax deduction at source, TDS U/S 194H, TDS U/S 194Q |
| Date: | July 26, 2023 |
My client is a Kaccha Artia in Anaj Mandi (Grain Market) which sells goods on Dami (Commission) on auction in Anaj Mandi to soyabean solved plant. The Transaction is as follows: –
Sale price = 100000/- + Commission = 2000/- + Market Board Fee = 100 total = 102100/- . The buyer is deducting TDS u/s 194H on Rs.102100/- and if the purchase value goes above 5000000 lakh through out year after that they deducting TDS u/s 194Q on total purchase value.Now Section 194Q has been inserted since July 2021. Therefore the buyer has starting deducting TDS under both the section. i.e. u/s 194H and u/s 194Q.
Kindly clarify that they are following right method.
The Buyer cannot deduct tax under section 194H of the Act on the whole amount of Rs. 1,02,100/-. Deduction under section 194H of the Act should be restricted to commission and deduction under section 194Q of the Act should be on the Sale price.