Tds U/s 194 Q applicability

This query is : Resolved

A K SARMA (Querist)
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01 July 2021 Sir

We have received an Invoice for an amount of Rs.52 Lacs which is prepared by our Vendor on 19.03.2021(Invoice Date 19.03.2021) against our Purchase Order. Now we have to release the payment in July 2021. whether TDS u/s 194Q is applicable? he also claimed TCS @0.075%.
Our company's turnover is more than 10 Crores hence, not liable to pay TCS as per the New Provison.
pl. advise.

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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01 July 2021 If either payment or accounting is done prior to 1st July, no need to deduct tax at source u/s 194Q. In this case, since you would already accounted the invoice prior to July, no TDS u/s 194Q.
You are required to pay TCS to the seller provided the turnover of seller is >10cr in the preceding FY.

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