yes, it is a section under income tax act, wherein TDS charges @0.1 % on taxable value. if turnover of any buyer is more than 5 cr. then buyer has to deduct TDS @0.1% under section 194 Q if turnover is note exceeding 5 Cr. Seller has to charge TCS @ 0.1% over the payable value.

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Accepted Answer

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 both buyers and sellers to avoid penalties and ensure proper tax deductions.
Example: If a buyer's turnover is 6 Cr, they must deduct TDS at 0.1% on the taxable value of transactions.
Example: If a seller's turnover is below 5 Cr, they need to charge TCS at 0.1% on the payable amount.

Asked in Air Liquide

yes, it is a section under income tax act, wherein TDS charges @0.1 % on taxable value. if turnover of any buyer is more than 5 cr. then buyer has to deduct TDS @0.1% under section 194 Q if turnover is note exceeding 5 Cr. Seller has to charge TCS @ 0.1% over the payable value.

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