TDS AND TCS LETTER
Tds and Tcs
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COMPANY NAME *
PAN NUMBER *
We hereby,
Inform you that our total sales/gross receipts/turnover from Business during FY 2020-21has been more than Rs.10 Crore. Therefore, provisions of Section 194Q inserted in the Income Tax Act vide Finance Act 2021with effect from 01.07.2021 are applicable to our company. Hence, we shall be deducting tax at source asper provisions of above section from purchase consideration paid/ credited on or after 01.07.2021 to you against supplies made by you at the rate 0.1 percent of purchase consideration paid / credited exceeding Rs 50 lakhs during the current financial year.Since, we are liable to deduct tax at source under section 194Q of the Act, you may ensure not to take any action to collect tax at source under section 206C,1H) of the Act w.e.f. 01.07.2021, in case provisions of section are applicable to you considering your amount of turnover and our purchases being of more than Rs 50 lakhs.You are also requested to intimate your Permanent Account In case you fail to provide your PAN, tax will be deducted at a higher rate in terms of Section 206AA of the Act.Further, you are also required to confirm that in your case amount of TDS/TCS was Rs.50,000/- or more in previous years relevant to Assessment Years 2019-20 and 2020-21 and you have filed your returns of income for these assessment years according to section 139(1), otherwise tax is required to be deducted at a higher rate in terms of Section 206AB of the Act.Further, as per Rule 114AAA, higher of TDS/TCS will be applicable in case PAN and AADHAR is not linked. This is applicable only in case of Individual.

THANKS

ASSESSMENT YEAR
AY 2019 - 20 - ACKNOWLEDGEMENT NO & FILLING DATE
AY 2020 - 21 - ACKNOWLEDGEMENT NO & FILLING DATE
SIGNATURE
To,
Sub: Declaration / information for deduction of tax at source u/s 194Q of the Act

Dear Sir,

This is with reference to your letter dated requiring our declaration / information in regard to deduction of tax at source u/s 194Q of the Act. The information is being provided hereunder:
1.Since your company is liable to deduct tax u/s 194Q of the Act, you may deduct the tax @0.1 % of sale consideration paid /credited by your company to us on the amount exceeding Rs.50 Ins during the current financial year. We also confirm that we will not take any action to collect tax at source under section 2060(1 H) of the Act w.e.f. 01.07.2021.

2.Permanent Account Number of our company is (PAN of seller). Further, we have duly filed our returns of income for Assessment Years 2019¬20 and 2020-21.

3. Our PAN and AADHAR is linked. This is applicable only in case of Individual.
ASSESSMENT YEAR
AY 2019 - 20 - ACKNOWLEDGEMENT NO & FILLING DATE
AY 2020 - 21 - ACKNOWLEDGEMENT NO & FILLING DATE
Please take note of the above information and confirmation and deduct tax at the appropriate rate-taking cognizance of the above information.
THANKS
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