Tds on purchase of goods OR MAKING A PAYMENT

Save Share

This query is : Resolved

Quick Summary

If you've purchased goods exceeding £50 lakh from a single seller in the financial year 2022-23, you might need to deduct TDS. Section 194Q applies if your turnover in the previous financial year was over £10 crore. The TDS rate is 0.1% on the amount exceeding £50 lakh.

JAMAL KHAN

JAMAL KHAN (Querist)
Follow

28 November 2022 i had purchased the goods more than 1 crore for the current year i.e. 2022-23, should i have to deduct TDS while making payment & at what rate..???

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

28 November 2022 The section 194Q applies to a buyer in the following cases:

A buyer whose turnover or gross receipt or sales in the immediately preceding financial year was more than Rs 10 crore, and
A buyer is responsible for making payment of a sum to the resident seller, and
Such payment is to be done for the purchase of goods of the value/aggregate of the value exceeding Rs 50 lakh from single seller.

Check these conditions before deducting TDS u/s. 194Q at 0.1% on the amount exceeding Rs 50 lakh in a financial year from a seller.

Message likes : 1 times