As you may be aware the Central Government by Finance Act, 2021 has widened the scope of Tax Deduction at Source (ie TDS) with effect from July 1 2021 by introducing section 194Q with respect to purchase of goods. Further, the second proviso to Section 206C(1H) of the Income Tax Act, 1961 (‘the Act’) states that if a buyer is liable to deduct tax at source under any other provision of this Act on the goods purchased by him from the seller and has deducted such amount, then the provisions of Sec 206(1H) is not applicable. Thus, provisions of Section 194Q and the provisions of Section 206C (1H) are mutually exclusive.
In view of the above, request you to provide us the information which will help MSEDCL in determining applicability of Tax Collected at Source (TCS).
We look forward to your continued support.
After providing your input, we appreciate your acknowledgement.
Declaration submitted up to 25th of the month will be considered for billing starting from 1st of next month. (For example, declarations submitted up to 25th of July will be considered for billing starting from 1st of August.)
I / We would like to inform that I / we have read and understood the provisions of Section 194Q of the Act and, we hereby confirm that:
Our aggregate turnover exceeds INR 10 Crore for FY 2020-21 hence, we are covered within the ambit of Section 194Q of the Income Tax Act, 1961 effective from July 1, 2021. Therefore I/we would be deducting Tax Deduction at Source (‘TDS’) as per the Income Tax Act. Further, we hereby agree to adequately compensate and indemnify MSEDCL to the extent of tax, interest, penalty or any other amount towards non deduction of TDS as required under Section 194Q of the Income Tax Act, 1961.
Our aggregate turnover exceeds INR 10 Crore for FY 2020-21
Consumers Registered on PAN
New Consumers Linked to PAN
Consumers Removed from PAN
I/We hereby provide my consent and authorize MSEDCL to collect and process the data provided under this document for the purpose of compliance with tax laws in India.
Note: Declaration submitted up to 25th of the month will be considered for billing starting from 1st of next month. (For example, declarations submitted up to 25th of July will be considered for billing starting from 1st of August.)
MSEDCL having PAN NO AAECM2933K here by certify that we have filed the ITR for last two previous year for the F.Y 2018-19 & 2019-20 with the due date prescribed U/S 139(1) / 139(5) of the Income Tax Act, 1961 and our aggregate TDS & TCS for two previous financial years is Rs.50,000 or more. Hence, normal provision & TDS is applicable in our case.
We acknowledge your declaration and consider the same while deducting the TDS on your transactions