01 જુલાઇથી ઇન્કમ ટેક્સ હેઠળ TDS માં આવી રહ્યા છે રહ્યા છે મહત્વના ફેરફારો જે જાણવા છે તમારા માટે જરૂરી

Please note that w.e.f 1-7-2021 new TDS section 194Q comes in to operation  What is difference between 194Q and 206(1H) I have tried to explain in Gujarati for better understanding

As you are aware, as per the new Section 194Q of the Income Tax Act, 1961 (‘the Act’), TDS is required to be deducted by the buyer on the sum paid or payable for purchase of goods in certain cases, with effect from July 01, 2021. Section 194Q is an introduction of the new TDS Section, but it has significant impact on TCS compliance.

In view of the above, please find below declaration:

“We hereby declare that as per the provisions of Section 194Q of the Income Tax Act, 1961, ……………………………… having PAN – …………………….., had turn over in the preceding financial year (FY2020-21) of more than Rs. 10 Crores. Hence we are liable as buyer to deduct tax at source on the payment for invoices issued by you on or after July 01, 2021. Accordingly, you are requested to not charge the TCS under section 206C(1H) in your invoices issued from July 01, 2021 onward. “

As per the declaration, we request you to kindly provide us the details by filling the Supplier Declaration Form.

You are also requested to please give us following documents which is one of the requirement of the 194Q interplay with Section 206(1H)

1.   PAN Number Copy

2.   Last two years Income Tax Return Acknowledgment or an affidavit for the same

your details must reach us by mail latest by June 25, 2021. This will help us to charge TDS as per the applicable rates. If we do not receive this declaration, we will have to charge TDS at applicable higher rates at 5% instead of 0.1% or maximum rate which is applicable