Avail 20% discount on updated CA lectures for Dec 21 .Use Code RESULT20 !! Call : 088803-20003

ICICI

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

TDS u/s 194Q Applicability


I have paid my vendor Rs. 92 Lakhs from Apl to Jul-21 out of which 55 Lakhs paid against last year outstanding and the balance against the purchases made in current year.

Total purchases made from him in current year is Rs. 37 Lakhs

Is TDS u/s 194q applicable ? if applicable at which amount and also share rules or guidelines

Regards
Vipul Acharya

Only purchases initiated from 1.4.2021 will be counted for calculating threshold of Rs.50 lacs. In the given case purchase from 1.4.2021 is still Rs.37 lacs. Hence you need not deduct TDS. Because Rs.55 lacs paid during FY 2021-22 is not considered for the said purpose; reason being it is consideration pertaining to transactions of previous financial year. But once the purchases(including advance payments received, if any) exceeds the threshold of Rs.50 lacs in FY 21-22, you have to deduct TDS on the amount in excess of Rs.50 lacs.
For more information on this refer CBDT circular 13/2021 dated 30.6.2021
https://www.incometaxindia.gov.in/communications/circular/circular_13_2021.pdf



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


Similar Resolved Queries

loading





Trending Tags