Format of Letter to Customer for TDS TCS Changes wef 1-7-2021
Date : _____
To
Customers Name =
Kind Attn : Mr / Ms _____
Mail to Customers for TDS/TCS Changes
Dear Sir,
We value our business relationship with you.
This letter is regarding the action required as per change in TDS and TCS laws from 1-7-2021
Action on TDS u/s. 194Q
Since your Turnover must be over Rs 10 crores p.a. and since our sale to us is expected to be over Rs 50 lakhs p.a., we request you to deducting a TDS u/s 194Q at 0.1% only.
We are not a specified person u/s 206AB. And have filed our returns as per Law.
We understand that our future payments will be after this TDS
And we will get credit of this TDS in your Form 26AS in due course
Action on TCS u/s. 206(1H)
As per 206(1H), if TDS is done by the customer then TCS is not required
Hence in our case, as per expert guidance, we have told our despatch department, that no TCS shall be charged on bills from us to you, from 1-7-2021.
