194Q APPLICABILITY

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This discussion clarifies the applicability of Section 194Q for TDS deductions on goods purchases made by companies with a turnover over 50 crore. TDS under 194Q is applicable if total purchases of goods from a single vendor exceed Rs. 50 lakhs in a financial year, provided TDS isn't already covered by other IT Act provisions. Importantly, Section 194Q specifically applies to goods, not services like maintenance where other TDS sections may apply.

prithviraj mohandoss

prithviraj mohandoss (Querist)

26 June 2021 Dear Friends,

we are a company having 50+ crore business turn over
Do we have to Deduct TDS with effect from 01.07.2021, for any material purhcase from small vendors like stationery, office maintenance and others

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

26 June 2021 I think you may have to deduct if total purchase (of any goods) from such vendor exceeds Rs.50 lacs in a year, provided TDS on the same is not applicable under other provisions of IT Act.
For example, in respect of maintenance, where TDS would be applicable as per section 194C, no need to deduct tax again u/s 194Q.
Also 194Q is related to goods (not services)

prithviraj mohandoss

prithviraj mohandoss (Querist)

03 July 2021 Thank you for your reply

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