Tax collected at source under section 206C(1H) but no Tax deducted under section 194Q Whether interest under section 201(1)/201(1A) or Penalty under section 271H can be levied

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The Tax Publishers Tax collected at source under section 206C(1H) but no Tax deducted under section 194Q--Whether interest under section 201(1)/201(1A) or Penalty under section 271H can be levied Query 1. My client did not deduct tax under section 194Q as the seller had already collected the tax under section 206C(1H) for the financial year 2022-23. The TDS officer passed an order under section 201(1)/201(1A) now demanding the TDS with interest. Kindly clarify whether my client is required to tax once again on the same transaction in the said scenario which took place more than 2 years ago. 2. In the above said case, the ITO issued a penalty notice under section 271H also for failure to deliver the statement of TDS. Kindly clarify whether my client is liable to file the statement when he did not deduct the tax itself. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Tax collected at source under section 206C(1H) but no Tax deducted under section 194Q--Whether interest under section 201(1)/201(1A) or Penalty under section 271H can be levied

Query

1. My client did not deduct tax under section 194Q as the seller had already collected the tax under section 206C(1H) for the financial year 2022-23. The TDS officer passed an order under section 201(1)/201(1A) now demanding the TDS with interest. Kindly clarify whether my client is required to tax once again on the same transaction in the said scenario which took place more than 2 years ago.

2. In the above said case, the ITO issued a penalty notice under section 271H also for failure to deliver the statement of TDS. Kindly clarify whether my client is liable to file the statement when he did not deduct the tax itself.