194q

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This discussion clarifies the applicability of TDS Section 194Q. If no further transactions occur after June, TDS under 194Q is not applicable for the financial year. However, if purchases continue from July onwards and exceed the ₹50 Lakh threshold, the buyer must deduct TDS at 0.10% on the amount exceeding this limit.

debasish banerjee

debasish banerjee (Querist)

26 June 2021 billed to buyer within june rs 75,00,000/- . received amount 60,00,000/- .
TCS applicable in prescribed rate .
question is that whether 194Q also applicable from july if further no transaction during the year 21-22.
both are more than 10cr tunover in F Y .20-21.

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

26 June 2021 If there are no further transactions from July, TDS u/s 194Q is not applicable.
If there are, then the buyer is required to deduct tax at source u/s 194Q from all the purchases on/after 1st July.

Ganeshbabu K

Ganeshbabu K (Expert)

28 June 2021 Section 194Q envisages that TDS at the rate of 0.10% of the purchase value paid in excess of ₹ 50 Lakhs shall be deducted by the buyer.

*TDS shall not be deducted on the threshold limit of ₹ 50 Lakhs available for each financial year.

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