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Section 194Q: TDS on Purchase of Goods
FCA BPMUNDRA bpmundra2@gmail.com 9314501680
Dear friends kindly note that effective from 1st July 2021 any person whose turnover is more than 10 crore rupees has to deduct TDS for purchase made from any person value exceeding rupees 50 lacs.
Detailed provisions are as under:
1. effective from 01-July-2021
2. Any person, being a buyer who is responsible for paying any sum to any resident.
“Buyer” means a person whose total sales, gross receipts or turnover from the business carried on by him exceed ten crore rupees during the financial year immediately preceding the financial year in which the purchase of goods is carried out.
3. When purchase of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year
At the time of credit of such sum to the account of the seller or at the time of payment thereof by any mode, whichever is earlier.
4. deduct an amount equal to 0.1 per cent. of such sum exceeding fifty lakh rupees as income-tax. In case Seller provided PAN card details, Rate will be 0.1% otherwise it will deducted @5 % as per Sec206 AA.
5. The provisions of this section shall not apply to a transaction in following cases:
a. tax is deductible under any of the provisions of this Act; and
tax is collectible under the provisions of section 206C other than a transaction to which sub-section (1H) of section 206C applies(TCS).
b. Sec206C (1H), which specify that “Provided further that the provisions of this sub-section shall not apply, if the 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”.