TDS U/S 94Q ON PURCHASE OF GOODS

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This discussion clarifies the rules for deducting Tax Deducted at Source (TDS) under Section 94Q for distributors whose turnover exceeds ₹11 crore. The key point is that TDS deduction only begins once the total purchases from a supplier exceed the ₹50 lakh exemption limit within the financial year, not from the first bill.

Priyanka Roy

Priyanka Roy (Querist)
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28 January 2022 Sir we are a distributor and our turnover exceed 11 cr. previous year. we have two supplier whose turnover also above 10 cr. & our every year transaction is almost 2 cr. So, my question is do we need to deduct tds u/s 94q from 1st April on every bill or we need to wait to cross the exemption limit i.e. 50 lacs.