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Section 194Q : TDS on Purchase of GOODS - Income Tax - Ready Reckoner - Income TaxExtract Section 194Q : Deduction on payment on certain sum for Purchase of goods. [Inserted by Finance Act, 2021, w.e.f. 01-07-2021 ] 1) Any person, being a buyer who is responsible for paying any sum to any resident (hereafter in this section referred to as the seller ) for purchase of any goods of the value or aggregate of such value exceeding ₹ 50,00,000 in any previous year, shall, - - at the time of credit of such sum to the account of the seller or - at the time of payment thereof by any mode, whichever is earlier, deduct an amount equal to 0.1% of such sum exceeding ₹ 50,00,000 as income-tax. 2) Where any sum is credited to any account, whether called suspense account or by any other name, in the books of account of the person liable to pay such income, such credit of income shall be deemed to be the credit of such income to the account of the payee and the provisions of this section shall apply accordingly. Time of deduction : Credit to the books of account of seller or at the time of payment whichever is earlier. Note : (i) buyer means a person whose total sales, gross receipts or turnover from the business carried on by him exceed ₹ 10 crore rupees during the financial year immediately preceding the financial year in which the purchase of goods is carried out, not being a person, as the Central Government may, by notification in the Official Gazette, specify for this purpose, subject to such conditions as may be specified therein. (ii) The provisions of this section shall not apply to a transaction on which (a) tax is deductible under any of the provisions of this Act; and (b) tax is collectible under the provisions of section 206C other than a transaction to which sub-section (1H) of section 206C applies
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