Tds on purchase OF JUNE

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This discussion clarifies the application of TDS on purchases made in June 2021, with payments made in July. The consensus is that if Tax Collected at Source (TCS) has already been applied to the transaction, you should not deduct TDS again, as these are mutually exclusive. Furthermore, if either the purchase or the payment occurred before 1st July 2021, TDS under section 194Q is not applicable.

jaigurudev

jaigurudev (Querist)
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05 August 2021 sir, govt. introduced tds on purchase from 1.7.2021 i have purchase goods in june.2021 and payment done in july.these purchase already suffered tcs .please advice should i still pay tds again

Deepa B

Deepa B (Expert)
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05 August 2021 No. If TCS is already done on the said transaction then TDS should not be done on it. Because both of them are mutually exclusive.

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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05 August 2021 Even if TCS was not applicable, when either purchase or payment is prior to 1st July, no TDS u/s 194Q would be applicable.

jaigurudev

jaigurudev (Querist)
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05 August 2021 deepaji party has charged tcs at the time of sale in june to me and i made payment in july
should i pay tds?

Deepa B

Deepa B (Expert)
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05 August 2021 I hope the payment made by you to your supplier is considering the TCS component shown in the invoice. If yes, no need deduct tax as TCS is already applied on the said transaction. Also I do agree with Ms.Poornima that if either purchase or payment has happened before 1.7.2021, then section 194Q does not apply

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