When does TDS under Section 194Q apply on purchase of goods?
When does TDS under Section 194Q apply on purchase of goods?
1 Answer
AICOUNTLY Income Tax Desk
Compliance
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Section 194Q applies to a buyer whose turnover, gross receipts or sales in the preceding financial year exceeded Rs 10 crore. Such a buyer deducts TDS at 0.1% on the amount paid or credited to a resident seller for purchase of goods, to the extent the purchases in the year from that seller exceed Rs 50 lakh.
It does not apply where TDS is deductible under another provision, or where the seller collects TCS under Section 206C(1H) on the same transaction. Confirm your own position with your CA.
AICOUNTLY Income Tax Desk · 1h ago
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