TDS 194Q applicability to Charitable Trusts

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Raushan Kumar (Querist)
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04 February 2022 Dear Sir/Madam,

In reference to the TDS 194Q introduced w.e.f. 01.07.2021, request you to please help me to understand that,

1) Is it applicable to Charitable Trusts or not
2) If yes, then why and If not they why not..

Thanking you in advance.
Raushan Kumar

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 February 2022 1 it's not applicable to charitable trust as it's related to sale of goods related to commercial entities.

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Raushan Kumar

Raushan Kumar (Querist)
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04 February 2022 Thank you Sir.. is there any specific clause/para where i can refer to submit my view to my senior

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 February 2022 A “business turnover” is required for these requirements to be applicable. As a result, until business revenue exceeds Rs. 10 crores, you are not required to deduct tax on purchases of items under 194Q.

Normally charitable trust will not do business.

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