TDS U/s 194Q & applicability

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This discussion clarifies the applicability of TDS under Section 194Q of the Income Tax Act, which requires purchasers to deduct TDS on goods purchases exceeding £50 lakh. It addresses specific scenarios involving prior TCS collection by suppliers and staggered payments, determining whether TDS is applicable and on which transaction amounts. The consensus is that TDS applies to the portion exceeding £50 lakh, especially when TCS has already been accounted for.

P.Harish

P.Harish (Querist)
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01 August 2021 Dear Sir/Madam
wef 1-7-21, under income tax act , purchaser has to deduct TDS on purchase of goods or payment made above 50 lac . There are some doubts about transactions, kindly help
1) Purchases is made in April month supplier has made TCS on Bill . Total bill AMT is 65 lac ,payment is made in July 55 lac - rest to be made in Aug . Whether TDS 194Q is applicable - on which AMT ? (TCS already by supplier)

2) Purchases made from Vendor in May June 45 Lac & in July 25 Lac ( He did TCS on 45 Lac) ,Payment made to him in July 40 Lac & rest to made shortly . Whether TDS would be applicable ? AMT ?
Thanks in advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 August 2021 1 No TDS applicable as TCS already made.
2 TDS applicable on 25 lacs.

P.Harish

P.Harish (Querist)
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20 August 2021 Thanks for reply Sir, Under point no 2 it is not clear , TDs would be on only July purchase or Total ₹ 70 Lac - TDs limit ₹50 Lac = 20 lac , , kindly elaborate

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 August 2021 Agree with you 20 lacs TDS applicable if there is no purchase in April.

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