INCOME TAX: TDS on Purchase of Goods under Section 194QNearxpert
Finance Act 2021 has introduce a new section in TDS chapter 194Q TDS on Purchase of Goods, with effected from 1st July 2021.
Section 194Q TDS on Purchase of goods Provision:-
A Person (Buyer) liable to deduct TDS if:-
- His Sale / Gross Receipts / Turnover during last year exceed Rs.10 Crores and
- Purchase goods of value more than Rs.50 Lakhs (Including GST) in current year from a resident seller ( PAN Wise) and
TDS to be deducted @ 0.1% of total value of transaction excess Rs.50 Lakhs (If Pan of Seller not provided than TDS to be deducted @ 5.0%). TDS to be deducted at the time of payment or credited to account of seller whichever id earlier.
Finance Act 2021’s Memorandum, Clarified that a case where both TDS on purchase of goods (U/s 194Q) and TCS on sale of goods (U/s 206C (1H) applicable, then only TDS Under section 194Q shall be deducted.
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