TDS under Section 194Q on purchase of goods

TDS on payment of certain sum for purchase of Goods-New Section 194Q inserted by The Finance Bill Budget 2021-22

Applicability of Section 194Q

This Section Applies to an Assessee (Buyer) whose Gross Receipts/Sales/Turnover in the Preceding financial year Exceed Rs. 10 Crore & when Aggregate amount of purchase from a particular buyer in the financial year Exceeds Rs. 50 Lakh.

Non-Applicability of Section 194Q

• A transaction on which tax is deductible under any provision of the Act
• A transaction, on which tax is collectible under the provisions of section 206C other than transaction to which sub-section (1H) of section 206C applies

Some Scenarios of Section 194Q

Compiled by: – CA Ayush Agarwal, CA Piyush Agarwal