A detailed analysis of Section 194Q and a comparative study with Section 206C(1H) of the Income Tax Act, 1961
The Finance Act 2021, has widened the scope of the TDS Chapter in the Income Tax Act, 1961 by introducing a new section namely 194Q dealing with TDS on Purchase of Goods w.e.f. 1st July 2021. This new TDS provision is just a replica of section 206C(1H) of the Income Tax Act, 1961 introduced by the Government with effect from 1st October, 2020. The only basic difference between these two sections is that the responsibility of deduction of tax will lie upon the Buyer whereas the responsibility of collecting tax will lie upon the Seller.
Source Taxguru
