Dear Customer,

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 on or before June 25, 2021 which will help MGVCL in determining applicability of Tax Collected at Source (TCS) on our invoices from July 1, 2021.

We look forward to your continued support.

After providing your input, we appreciate your acknowledgement.

I / We would like to inform that I / we have read and understood the provisions of Section 206AB of the Act and, we hereby confirm that:

Option 1: Our aggregate turnover does not exceed INR 10 Crore for FY 2020-21 hence, we are not covered within the ambit of Section 194Q of the Income Tax Act, 1961 effective from July1, 2021. Therefore I/We request you to continue to collect Tax Collection at Source (‘TCS’) under Section 206C(1H) of the Income tax Act, 1961 on all our invoices raised on us where the purchases exceeding INR 50 Lakhs including GST during the Financial Year 2021-22.

Option 2: 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 MGVCL 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.

  Option 1: Our aggregate turnover does not exceed INR 10 Crore for FY 2020-21
  Option 2: Our aggregate turnover exceeds INR 10 Crore for FY 2020-21

Declaration of compliance u/s Section 206AB r.w Section 206CCA of the Income Tax Act 1961

We hereby certify that we have filed the ITR for last two previous years i.e., for FY 2018-19 and FY 2019-20 within the due date prescribed U/S 139(1) / 139(5) of the Income Tax Act, 1961.

We further certify that our aggregate TDS & TCS for two previous financial years is Rs.50,000 or more.

MGVCL Customer Code (Shared in the email subject)

Name of the Customer

Permanent Account Number

Name of the authorised signatory of Customer

Designation of the Authorised Signatory of Customer

Email of the Customer

Date

I/We hereby provide my consent and authorize MGVCL to collect and process the data provided under this document for the purpose of compliance with tax laws in India

MGVCL having PAN NO AADCM7439H 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

You can print a copy of your answer after you submit.