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Regarding applicability of Sec 194Q

Rules 192 views 4 replies

kondalarao

Tax Consultant

48 Points Joined February 2021

Hi Sir/Madam,

I am accountant of a Sole Proprietorship, We have turnover above 10 cr , we are applicable to deduct TDS u/s 194Q from my suppliers when my purchases exceeds 50 lacs from such party from 1st July 2021 onwards.

Here my question is that, Is it my responsibility to know the suppliers turnover whether it exceeds 10 cr or not. Or whenever they gave " Confirmation of sec 194Q applicability " to use, then only is my responsibility to do u/s 194Q.

Can you please answer my Question ?

Replies (4)

Sudhir Kulshreshtha

Advocate

192 Points Joined June 2021

This section was inserted in the IT Act 1961 vide Finance Act 2021.
Any person who is buying goods including capital goods and paying the amount exceeding Rs.50 Lac. is responsible to deduct TDS in any Financial year.This is applicable W.e.f 1 St.July 2021.
Rate 1% (5% if Pan is not furnished) of the purchase value exceeding 50 lac.

Pratick Datta

54 Points Joined June 2019

You dont need to know your Supplier's Turnover. If purchase exceeds 50Lakh from the supplier you have to deduct TDS U/S 194Q @ 0.1%.

kondalarao

Tax Consultant

48 Points Joined February 2021

Thank you sir, Now it is clarified.

kondalarao

Tax Consultant

48 Points Joined February 2021

Originally posted by : Pratick Datta
	You dont need to know your Supplier's Turnover. If purchase exceeds 50Lakh from the supplier you have to deduct TDS U/S 194Q @ 0.1%.