CBDT Exempts Air India India from Deducting TDS and TCS
The Central Board of Direct Taxes (CBDT) exempted Air India from deducting TDS and TCS. The notification says, “in exercise of the powers conferred by Explanation to sub-section (1) of section 194Q of the Income-tax Act, 1961 (43 of 1961) , the Central Government hereby specifies that Air India Assets Holding Limited (PAN: AAQCA4703M) shall not be considered as ‘buyer’ for the purpose of sub-section (1) of section 194Q of the said Act in case of transfer of goods by Air India Limited (PAN: AACCN6194P) to it under a plan approved by the Central Government.”
Section 194Q(1) provides that the buyer is liable to deduct tax at source if his purchase of any goods from the resident seller exceeds ₹ 50 lakhs in the previous year at the time of crediting such amount to the account of the seller or at the time of payment by any mode, whichever is earlier.
CBDT notified that “In exercise of the powers conferred by clause (b) of Explanation to sub-section (1H) of section 206C of the Income-tax Act, 1961 (43 of 1961) , the Central Government hereby specifies that, Air India Limited (PAN: AACCN6194P) shall not be considered as ‘seller’ for the purposes of sub-section (1H) of section 206C of the said Act in relation to transfer of goods by it to Air India Assets Holding Limited (PAN:AAQCA4703M) under a plan approved by the Central Government,”
The tax shall be collected by the seller from buyer, on an amount received exceeding INR 50 Lakhs at the rate of 0.1% if seller total sales, gross receipts or turnover from the business carried on by him exceed ten crore rupees during the financial year immediately preceding the current financial year; there is a sale of goods; and the seller receives any amount as consideration for the sale of any goods of the value or aggregate of such value exceeding INR 50 lakhs in any previous year from such buyer.
Copyright © 2019 - All Right Reserved