TDS under 194Q clarification
This query is : Resolved
12 September 2024
Company A made an advance payment of ₹3 crores to Company B for the acquisition of the latter’s business during FY 23-24, approximately 6-9 months ago. No TDS was deducted on this advance payment.
In August 2024, the deal to acquire the business failed, and Company A now intends to use the advance amount to purchase certain assets from Company B instead.
When does TDS under Section 194Q become applicable in this situation? Should TDS be deducted in August 2024, and if so, is there a need to pay any interest or penalties for the delay?
In August 2024, the deal to acquire the business failed, and Company A now intends to use the advance amount to purchase certain assets from Company B instead.
When does TDS under Section 194Q become applicable in this situation? Should TDS be deducted in August 2024, and if so, is there a need to pay any interest or penalties for the delay?
13 September 2024
1. Yes.
2. No, not applicable as the deal happens in August itself.
2. No, not applicable as the deal happens in August itself.
24 September 2024
TDS under section 194Q is applicable only for purchase of GOODS of value exceeding Rs 50 lakhs. Your scenario does not attract TDS under section 194Q. What is the nature of assets purchased?
15 October 2024
Good Luck.
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