Understanding New TDS Provisions on Purchase of Goods u/s 194Q with Practical Examples

| Last updated: 02 July 2021

Quick Summary
This article explains the new TDS provisions under Section 194Q, effective from 1st July 2021, concerning the purchase of goods. It clarifies that buyers with a turnover exceeding Rs. 10 crores in the preceding financial year are liable to deduct TDS at 0.1% on purchases exceeding Rs. 50 lakhs in the current financial year. The article provides practical examples to illustrate these rules and discusses potential consequences like disallowance of expenses and higher TDS rates for non-compliant sellers.

In this Taxalogue, the new provisions of TDS on purchase of goods, contained in section 194Q, applicable w.e.f. 1.7.2021, is being explained with the help of some easy to understand practical illustrations. Practical Examples on Section 194Q 1. Mr. Goodly purchases goods worth Rs. 15 lakhs on
Daily Limit Reached

You have reached your daily limit of 2 Free Articles

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?
  • No Ads
  • WhatsApp Community
  • Daily E-Newsletter
  • Unlimited Articles Access
  • Profile Visitors
  • Link Social Profiles
  • Featured Job Posts
  • Pro Badge
  • Expert GST Guidance
  • Unlimited Forum Replies
  • Download Content in PDF
BEST VALUE
2 YEAR PLAN
3,499
(Excl. of GST ₹629)
1 YEAR PLAN
1,999
(Excl. of GST ₹359)

3 MONTHS PLAN
999
(Excl of GST ₹179)
View all CCI PRO benfits

Already a PRO member? Login here for an ad-free experience.

8599 Views 3 Likes Comment   Share Income Tax   Report


Mayank Mohanka

About the Author

Chartered Accountant

Sh. Mayank Mohanka is a seasoned Tax Practitioner, a Fellow Member of the Institute of Chartered Accountants of India and a Bachelor of Commerce, in Honours Degree from Shree Ram College of Commerce (SRCC), Delhi University. He is a Senior Partner in a Noida based established and reputed CA Firm, M/s S M Mohanka Ass ... Read more

View Articles
Comments :

Related Articles


Loading


Popular Articles




Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Pro Member rana andcompanyrana andcompanyPro Member Kalyan GuhaKalyan GuhaPro Member Sivashankary SivaramakrishnanSivashankary SivaramakrishnanPro Member SARAN KUMARSARAN KUMARPro Member Nayan shettyNayan shetty
Subscribe to Pro
Join an elite circle of professionals

CCI Articles

You can also submit your article by sending to article@caclubindia.com

submit article

Browse by Category