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Regarding Sec 194 Q of Income Tax

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Prashant Balkrishna Thanekar

Accounts Manager

183 Points Posted on 06 August 2021

Respect all,

I have a query regarding section 194 Q of Income Tax

I have purchased goods from My suppliers is Rs.70/- Lakhs exclueding gst for the period from April 21 to Jun 21 that is over Rs.50/- Lakhs & We have a purchased good of Rs.10/- Lakhs from him in Jul 21

Now on which amount we have to deduct TDS on Rs.10/-Lakhs or Rs.30/- Lakhs ( Rs.70 Lakhs - 50 Lakhs = Rs.20 Lakhs + Rs.10 Lakhs )

Replies (3)

Quick Summary

This discussion clarifies the application of Section 194Q of the Income Tax Act regarding TDS on the purchase of goods. The key question is when TDS should be deducted if the total purchase value exceeds the Rs. 50 Lakh threshold within a financial year. The consensus is that TDS under Section 194Q is applicable from 1st July 2021 onwards, meaning deductions are based on purchases made from that date, specifically on the amount exceeding the threshold.