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TDS applicability on Material Purchased for Building under Construction

Vipul Acharya (Account Officer) (647 Points)

04 March 2022

Dear Sir,

Kindly confirm do we need to deduct TDS u/s 194Q against purchase of goods/material for Building Construction

Regards

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177713 Points)
Replied 04 March 2022

Yes, if the TDS deduction criteria as per sec. 194Q of IT act satisfied...

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shubham cool (2 Points)
Replied 04 March 2022

Tds is deducted u/s 194Q @ 0.1% of the amount exceeding 50 lacs. However the rate will be 5% in case the assesse has not furnished PAN

CA Updates ICAI (12 Points)
Replied 05 March 2022

Firstly , if you have any contract with seller and you purchased building material for business's Building (not personal purpose) then you have to deduct tds under section 194C
Secondly, if you purchased a material for building(for any Purpose) then Buyer have to deduct TDS of seller if he purchase goods for more than 50Lacs in a year and
for this section 'Buyer' means a person if your business sale is more than 10cr in last financial year, it means if your business sale is less than 10cr in last year then sec 194Q will not apply on you and you did not need to deduct tds of seller.