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Regarding applicability of Sec 194Q

kondalarao (Tax Consultant) (48 Points)

10 August 2021

Hi Sir/Madam,

I am accountant of a Sole Proprietorship, We have turnover above 10 cr , we are applicable to deduct TDS u/s 194Q from my suppliers when my purchases exceeds 50 lacs from such party from 1st July 2021 onwards.

Here my question is that, Is it my responsibility to know the suppliers turnover whether it exceeds 10 cr or not. Or whenever they gave " Confirmation of sec 194Q applicability " to use, then only is my responsibility to do u/s 194Q.

Can you please answer my Question ?

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4 Replies

Sudhir Kulshreshtha (Advocate) (182 Points)
Replied 10 August 2021

This section was inserted in the IT Act 1961 vide Finance Act 2021.
Any person who is buying goods including capital goods and paying the amount exceeding Rs.50 Lac. is responsible to deduct TDS in any Financial year.This is applicable W.e.f 1 St.July 2021.
Rate 1% (5% if Pan is not furnished) of the purchase value exceeding 50 lac.

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Pratick Datta (53 Points)
Replied 10 August 2021

You dont need to know your Supplier's Turnover. If purchase exceeds 50Lakh from the supplier you have to deduct TDS U/S 194Q @ 0.1%.

2 Like

kondalarao (Tax Consultant) (48 Points)
Replied 11 August 2021

Thank you sir, Now it is clarified.

kondalarao (Tax Consultant) (48 Points)
Replied 11 August 2021

Originally posted by : Pratick Datta
	You dont need to know your Supplier's Turnover. If purchase exceeds 50Lakh from the supplier you have to deduct TDS U/S 194Q @ 0.1%.