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Applicability of TDS u/s 194Q

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Shivek Pandey

1 Points Posted on 24 September 2021

What if I was a firm having turnover > 10 crores, now I have turned my firm to a Pvt. Ltd. Company, and the company is having turnover < 10 crores. Will TDS provision u/s 194Q be applicable for company in next FY since it is a case of succession, will turnover of firm and company be aggregated??

Replies (3)

Quick Summary

This discussion explores whether TDS under section 194Q applies to a newly formed private limited company that was previously a firm. The key question is whether the turnover of the preceding firm should be aggregated with the new company's turnover to determine applicability, especially if the company's individual turnover is below the threshold. The consensus leans towards aggregating both turnovers in cases of succession to ascertain the correct TDS liability.

shobha m

articale student

127 Points Posted on 24 September 2021

Next year is not applicable for 194Q to your firm /company
Your turnover is exceed 10crores TCS is applicable for you

Deepak Kumar

791 Points Posted on 24 September 2021

I think no. your turn over is less than 10crore preceding Financial year not applicabe section 194q

Ashok J

CA Final

880 Points Posted on 29 September 2021

To determine whether 194 Q is applicable to new company in FY 22-23, I think it is correct to add both firms turnover and decide. Does 194Q specifically state, in case of conversion, you should consider only successor firm turnover for 194Q? No. So you should add both