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194Q in income Tax Act 1961

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Haranath pasupuleti

3 Points Posted on 24 May 2022

Sir/Madam,

Buyer(A) total turnover/sales in previous Financial Year crosses 10 crores, but seller "B" turnover is less than 10 crores and annual transactions with buyer "A" is less than 50 Lakhs.

Does Buyer need to deduct TDS @ 0.1% .

Does any ONE condition qualify for applicability of TDS -194Q or both conditions need to qualify.

Replies (7)

Quick Summary

This discussion clarifies the applicability of TDS under Section 194Q of the Income Tax Act, 1961. It explains that for TDS to be deductible, the buyer's total turnover must exceed ₹10 crores in the previous financial year, AND their aggregate purchases from a single seller must exceed ₹50 lakhs during that same period. In the scenario presented, where the buyer's turnover is over ₹10 crores but their total purchase value from the seller is less than ₹50 lakhs, TDS is not applicable. The seller's turnover is irrelevant for this section.

sabyasachi mukherjee

Profession Business

28246 Points Posted on 24 May 2022

Here both are buyers so u is buying here and from whom. The criteria is not the turnover.

Eswar Reddy S

CFO- at NHTF

58280 Points Posted on 24 May 2022

There is exemption for turnover upto 10 crores .

Both conditions should be met to apply 194Q

Kesavaraj S

582 Points Posted on 24 May 2022

TDS U/s 194Q is applicable only if Buyer's Turnover is above Rs.10 Crores and his purchase value from Supplier Exceeds Rs.50 Lakhs in any Previous Year .
As per your query TDS U/s 194Q is not applicable because Transaction value is less than Rs.50Lakhs...