194Q APPLICABILITY IN CASE OF CONCRETE PLANT

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Section 194Q of the Income Tax Act may apply to your concrete plant if you purchase raw materials like reti and kapchi. If your total purchases from a single seller exceed £50 lakh in a financial year, and your previous year's turnover was over £10 crore, you'll need to deduct TDS. The TDS is calculated at 0.1% on the amount exceeding £50 lakh, provided the seller is a resident.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)

06 January 2025 In CONCRETE PLANT if reti, kapchi is purchased as raw material and during financial year amount exceeds 50lakh then section 194Q applicable?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

06 January 2025 Yes, if purchasing from same seller.
If all the conditions as per the section are met, then TDS liability will arise.

Sowmya.G

Sowmya.G (Expert)

07 January 2025 If your annual turnover in the previous financial year exceeds Rs 10 crores, you are liable to deduct TDS under section 194Q for purchases exceeding 50 lakhs. For example purchases from a particular seller is Rs 60 lakhs. TDS to be deducted @ 0.1% on Rs 10 lakhs. The seller must be a resident.

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