TDS on Purchase of Goods u/s 194Q
From 1 st July,2021 , businesses are required to deduct TDS on purchase of goods along with the current scope of TDS deduction applicable on notified nature of payment or expenditure. With the insertion of a new section ‘194Q’, the buyer is liable to deduct TDS on the goods purchases and remit it to the Government. Let’s understand the new section ‘194Q’ in more details. Who should deduct TDS u/s 194Q? You should deduct TDS under provision 194Q if the annual turnover of your business exceeds Rs 10 crore in the previous financial year. What types of purchases you need to deduct TDS u/s 194Q? You need to deduct TDS if you purchase goods worth more than Rs 50 lakhs from a single vendor in the same financial year. Apart from this, there are other conditions such as purchases should be from a resident and TDS has not been deducted under any other provisions of the Income Tax Act What is the time or point at which TDS needs to be deducted? TDS is required to be deducted at the time of c...