Summary of Sec 194Q

 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.