CA Piyush Agarwal
Quick Summary
TDS on payment of a certain sum for purchase of Goods - New Section 194Q inserted by The Finance Bill Budget 2021-22
|
Particulars |
Scenario-1 |
Scenario-2 |
Scenario-3 |
|
Turnover of Seller (In Cr.) |
12 |
6 |
12 |
|
Turnover of Buyer (In Cr.) |
6 |
12 |
12 |
|
Sale of Goods (In Cr.) |
2 |
2 |
2 |
|
Sales Consideration paid during the year (In Cr.) |
1 |
1 |
1 |
|
Who is liable to deduct or collect tax? |
Seller |
Buyer |
Buyer |
|
Rate of Tax |
0.1% |
0.1% |
0.1% |
|
Amount on which tax to be deducted or collected (In Cr.) |
0.5 |
1.5 |
1.5 |
|
Tax to be deducted or collected |
5,000/- |
15,000/- |
15,000/- |
FAQ :
TDS u/s 194Q is a provision introduced by the Finance Bill 2021-22 that requires Tax Deducted at Source on the purchase of goods.
Generally, the buyer is liable to deduct TDS under section 194Q when purchasing goods from a resident seller.
The rate of TDS under section 194Q is 0.1%.
TDS is deducted on the sale consideration paid during the year, provided it exceeds the specified threshold.
Section 194Q was inserted by The Finance Bill Budget 2021-22.
CAclubindia
