Summary of Sec 194Q:
Tax to be deducted for:
· Purchase of goods from a resident seller
· Goods are purchased for a value or aggregate of value exceeding ₹50 lakhs in current FY
· The person buying shall fall into the meaning of buyer as provided for this section (buyer means a person whose total turnover from business exceeds Rs. 10 crore during the FY immediately preceding the FY in which the purchase of goods is carried out – if the turnover exceeds Rs 10 cores in last FY, 194Q is applicable in this FY)
Time of Deduction:
Earlier of
· Time of credit of such sum to the account of the Seller (when the invoice is accounted)
· At the time of payment
Amount of on which to be deducted:
On such purchase consideration booked or paid, in excess of Rs 50 lakhs,
(Value on which TDS shall be deducted = Total value of purchase (-) Rs. 50 lakhs)
Rate of TDS
0.1% (5% in case PAN is not furnished) of the purchase value exceeding first Rs. 50 lakhs.
