TDS AND TCS ON SALE OF GOODS
Shankar Gowda (13 Points)
02 June 2021
FROM JULY-2021 ONWARDS TCS AND TDS IS IMPLEMENTING HOW TO CALCULATE AND WHO WILL DEDUCT THE TDS ON SALE OF GOODS
2 Replies
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 02 June 2021
The onus would shift on the buyer and Tax to be deducted at source subject to the provisions of section 194Q wef 1st July 2021
prasad Nilugal
( GST Practitioner & Accounts )
(14846 Points)
Replied 02 June 2021
As per the provisions of the section 194Q of the Income Tax act , Being a buyer you have deduct a TDS @ 0.1 % , if purchase of Goods value / aggregate value of exceeds 50 lakhs , another condition is buyer who deduct TDS his tunover should be more than 10 crore in the immdiately preceding financial year , in which such puchase has taken palce .
Example
Mr A buyer turnover - 40 crore , purchase goods of RS 52 lakhs from Mr B .
Section 194 Q applicable , becuase buyers turnover exceeds 10 crore and purchase is more than 50 lakhs
TDS
52 lakhs - 50 lakhs = 2 lakhs
TDS rate @ 0.1 % on 2 lakhs = 200
Amount of TDS RS 200 /- deductible
More details please refer section 194 Q
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