mars by GHC Interview Questions and Answers

Section 194Q under income tax act mandates TDS at 0.1% on taxable value for buyers with turnover over 5 Cr, while sellers must charge TCS at 0.1%.

• Section 194Q of the income tax act requires buyers with turnover exceeding 5 Cr to deduct TDS at 0.1% on taxable value.

• If the turnover of the buyer is not more than 5 Cr, the seller has to charge TCS at 0.1% over the payable value.

• TDS and TCS rates are both set at 0.1% under this section.

• Compliance with Section 194Q is essential for...read more

Goods and services covered under RCM include specified categories like transportation services, insurance services, and goods purchased from unregistered dealers.

• Transportation services

• Insurance services

• Goods purchased from unregistered dealers

Accrued income is recorded as a debit in the balance sheet under current assets to reflect revenue earned but not yet received.

• Accrued income represents revenue that has been earned but not yet received.

• Debiting accrued income in the balance sheet under current assets increases the company's assets and reflects the amount of revenue that is owed.

• This adjusting journal entry ensures that the company's financial statements accurately reflect the revenue earned during the accoun...read more

Section 194Q is a TDS provision on payment made to resident for purchase of goods

• Section 194Q mandates deduction of TDS at 0.1% on purchase of goods exceeding Rs. 50 lakhs in a financial year

• It applies to buyers whose turnover exceeds Rs. 10 crores in the preceding financial year

• The TDS deducted under section 194Q needs to be deposited with the government and a TDS certificate must be issued to the seller

• It is applicable from 1st July 2021

Input GST on goods can be claimed by ensuring proper documentation and compliance with GST regulations.

• Ensure that the goods are eligible for GST input credit

• Maintain proper invoices and receipts for the goods purchased

• File GST returns accurately to claim input credit

• Follow GST regulations and guidelines for claiming input credit