Exemption under Section 194N - Notification No 70/2019

[Krishna Murthy]

Sir, this is with regard to exemption given under NN 70/2019 dated 20-09-2019 with respect to TDS of cash withdrawls from bank. Exemption in the above notification is given to traders operating under APMCs.

In this matter, there are two types of transactions done by traders.

1. Trading with farmers in the APMCs itself. Here, the farmers and traders come under the premises of APMCs and make transactions with each other. This would be under the control of APMCs and cess @ 1% would be collected by APMCs.

2. Trading with farmers would be done outside APMCs. However, APMCs would be paid Cess of 1% for the transactions made outside the APMCs.

Would both the above transactions come under the preview of exemption or only first type of transactions would come under the exemption? Pls clarify.

AI Summary

Clarification sought on TDS exemption for cash withdrawals under Notification No. 70/2019 for APMC-related transactions. A query was raised regarding the exemption under Notification No. 70/2019, dated 20-09-2019, concerning TDS on cash withdrawals from banks for traders operating under Agricultural Produce Market Committees (APMCs). The inquiry seeks clarification on whether the exemption applies to both types of transactions: those conducted within APMC premises, where a 1% cess is collected, and those conducted outside APMCs, where a 1% cess is still paid. The question is whether both transaction types qualify for the exemption or only those occurring within APMCs.