Respected Concerns,
My name is Himanshu.
I need to ask the purchase of which goods are covered u/s 194Q.
Currently we're purchasing raw materials i.e. steel bars, cement etc to build a manufacturing plant for our business.
The purchase value of steel bars and other raw material is greater than 50 lacs in the previous year.
So, I need to ask do we have to deduct TDS u/s 194Q on the said purchase too?
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Definition of Goods u/s 194Q.
Replies (4)
As per provisions of section 194Q of the Income Tax Act, the purchaser of the goods paying any sum to the resident seller having value/ aggregate value exceeding INR 50 Lakhs is liable to deduct TDS @ 0.1%
Section 194Q applies in the following cases:
-
When the buyer’s turnover, gross receipt or sales exceeds ₹10 Crores for the previous financial year
-
The buyer is liable for making payments to a resident seller
-
When the payment is to be made for purchase of goods whose total values exceeds ₹50 Lakhs
Check whether all the three conditions apply to your concern!!!
Do we need to deduct TDS on the purchase of raw material for building purposes too?
The term "Goods" in this section comprises all goods? Whether it is used in further supply or not!
The term "Goods" in this section comprises all goods? Whether it is used in further supply or not!
As per condition 1 (assuming you would not have started the business as on date), the section would not be applicable to you.
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