194Q WHEN APPLICABLE???

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This discussion clarifies when to begin deducting TDS under Section 194Q. If your client's turnover exceeded 10 Crore in the previous financial year and they are liable to pay over 50 Lakhs for goods purchases in the current financial year, TDS must be deducted. The deduction applies from the point of credit or payment, even if a provision has been made. Importantly, TDS under this section isn't required if another provision already covers the transaction, except for Section 206C(1H).

YELLANKI RATHNAGIRI

YELLANKI RATHNAGIRI (Querist)
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05 May 2022 My client turnover crossed 10Cr in Feb-2022

should be deducted TDS on purchase U/s194Q for March-2022 (month purchase) or should be started TDS from April (next financial year) onwards.

Please tell me

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 May 2022 194Q TDS should be started from April (next financial year) onwards.

CA Suresh Jain

CA Suresh Jain (Expert)
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07 May 2022 Every person carrying business or profession whose turnover exceed Rs. 10 Cr. in PY and responsible for paying a sum exceeding Rs. 50 lakh in aggregate in current FY to a person resident for value of purchase of goods is liable to deduct TDS @ 0.10% at the time of credit of or payment of such sum which ever is earlier.
The TDS is required to be deducted even in case the provision is made.
No TDS under this section is required to be deducted if the TDS is deductible or TCS is collectible on the transaction under any other provision except u/s. 206C (1H)

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