TDS ON PURCHASE OF GOODS RULE 194Q
This query is : Resolved
21 May 2021
Dear Sir/Madam,
1) Our Turnover for Previous F.Y. (i.e. 2020-21) was more than Rs. 10 Crores.
2) We have a supplier who has charged TCS u/s 206C (1H) on the applicable Transactions since April 2021 to till date and will continue the same till 30.06.2021.
3) Now as per Rule u/s 194Q Buyer is liable to deduct TDS on Purchases exceeding Rs. 50 Lakhs. This rule will be applicable from 01.07.2021.
So, please help me understand few point with view to TDS on Purchase of Goods Rule u/s 194Q -
1) Will I have to deduct TDS on Purchases taken from this Supplier from 01.07.2021, as Purchases have already exceeded Rs.50 Lakhs as of date
OR
the threshold of Rs. 50 Lakhs be counted from transaction on and after 01.07.2021 to abide with TDS on Purchase of Goods Rule.
2) Will I have to deduct TDS while making payment of Invoice pertaining to April - June 2021 in which TCS was charged
OR
TDS be deducted on Transactions/Invoices on and after 01.07.2021 at the time of booking.
3) Is TDS to be deducted on NET Value excluding GST or on Gross Invoice Value.
4) Can my supplier continue to charge TCS instead of I deducting TDS.
Looking forward to your expert advise and guidance !
Thanks & Regards,
Rachana
1) Our Turnover for Previous F.Y. (i.e. 2020-21) was more than Rs. 10 Crores.
2) We have a supplier who has charged TCS u/s 206C (1H) on the applicable Transactions since April 2021 to till date and will continue the same till 30.06.2021.
3) Now as per Rule u/s 194Q Buyer is liable to deduct TDS on Purchases exceeding Rs. 50 Lakhs. This rule will be applicable from 01.07.2021.
So, please help me understand few point with view to TDS on Purchase of Goods Rule u/s 194Q -
1) Will I have to deduct TDS on Purchases taken from this Supplier from 01.07.2021, as Purchases have already exceeded Rs.50 Lakhs as of date
OR
the threshold of Rs. 50 Lakhs be counted from transaction on and after 01.07.2021 to abide with TDS on Purchase of Goods Rule.
2) Will I have to deduct TDS while making payment of Invoice pertaining to April - June 2021 in which TCS was charged
OR
TDS be deducted on Transactions/Invoices on and after 01.07.2021 at the time of booking.
3) Is TDS to be deducted on NET Value excluding GST or on Gross Invoice Value.
4) Can my supplier continue to charge TCS instead of I deducting TDS.
Looking forward to your expert advise and guidance !
Thanks & Regards,
Rachana
22 May 2021
1 yes, deduct TDS from 01/07/2021.
2 TDS not required for April to June as tcs already deducted.
3 TDS to be deducted net value excluding GST.
4 your supplier can't continue TCS.
2 TDS not required for April to June as tcs already deducted.
3 TDS to be deducted net value excluding GST.
4 your supplier can't continue TCS.
13 June 2021
Dear Sir,
Thank you for the guidence.
We had sent out letters to our Customers' to confirm if TDS on Purchase of Goods Rule u/s 194Q applies to them & they will deduct our TDS on Purchase exceeding Rs. 50 Lakhs.
Few of them have not replied in spite of our Gentle Reminders. So can we continue to charge TCS to them as we are charging now as Transaction value has crossed Rs. 50 Lakhs ?
Kindly advise.
Thanks & Regards,
Rachana
Thank you for the guidence.
We had sent out letters to our Customers' to confirm if TDS on Purchase of Goods Rule u/s 194Q applies to them & they will deduct our TDS on Purchase exceeding Rs. 50 Lakhs.
Few of them have not replied in spite of our Gentle Reminders. So can we continue to charge TCS to them as we are charging now as Transaction value has crossed Rs. 50 Lakhs ?
Kindly advise.
Thanks & Regards,
Rachana
13 June 2021
Yes, continue to charge TCS to them.
14 June 2021
Thank you for the reply.
15 June 2021
You are welcome.............
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