5 Replies
Hari Beldona
(ACA)
(1533 Points)
Replied 29 July 2021
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
Nidhi
(Chief Accountant)
(3150 Points)
Replied 29 July 2021
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
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
Nidhi
(Chief Accountant)
(3150 Points)
Replied 31 July 2021
download this pdf
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