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194q in TDS

Ajay Ingale (15 Points)

29 July 2021

Please explained me 194q In TDS

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Hari Beldona (ACA) (1533 Points)
Replied 29 July 2021

HOMEPAGE

ECONOMY

Economy

CBDT issues guidelines under section 194Q

The income tax department issued a circular dated 30th June 2021 laying down the guidelines for TDS deduction under section 194Q. These guidelines are given to remove this section’s difficulties and related sections 194-O and 206(1H).

Section 194Q was inserted by the Finance Act 2021, which is applicable from 1st July 2021. Section 194Q applies to a buyer who has a:

Turnover of more than Rs.10 crore in the previous financial year.

He purchases goods exceeding Rs.50 lakh of value in a year.

Such a buyer has to deduct TDS at the rate of 0.1% on the amounts exceeding Rs.50 lakh. This section is exactly the opposite of section 206C(1H), where TCS must be collected

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Nidhi (Chief Accountant) (3150 Points)
Replied 29 July 2021

Any person, being a buyer who is responsible for paying any sum to any seller (being a resident) for purchase of any goods (including capital goods), where the value or aggregate of such values, exceeds ₹50 lakhs in any P.Y., shall deduct TDS.

Applicable w.e.f.: 1st July, 2021.

Rate of TDS: 0.1% (5% in case PAN is not furnished) of the purchase value exceeding ₹50 lakhs.

Ankit Neema (2742 Points)
Replied 30 July 2021

Comparison of sections 194Q with 206C(1H) https://www.caclubindia.com/share_files/details.asp?mod_id=81345

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Manoj Singh (236 Points)
Replied 30 July 2021

Hey, This will help you to know about and process too, to know more visit- CA In Delhi

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Nidhi (Chief Accountant) (3150 Points)
Replied 31 July 2021

Https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.incometaxindia.gov.in/communications/circular/circular_13_2021.pdf&ved=2ahUKEwiD3KPlyIzyAhVKbn0KHQlODSAQFjAAegQIAxAC&usg=AOvVaw3AOONc0iPm2y4KPEP3Bqlr

download this pdf