TDS AND TCS ON SALE OF GOODS

As per the  provisions of the section 194Q of the Income Tax act  , Being  a buyer  you have deduct  a  TDS  @ 0.1 %  , if   purchase of Goods value /  aggregate  value  of  exceeds  50 lakhs , another  condition  is  buyer who deduct  TDS his tunover should be  more than 10 crore  in the immdiately  preceding  financial  year , in which  such  puchase has taken palce .

Example 

Mr  A  buyer  turnover  -   40  crore  , purchase  goods  of RS  52  lakhs from Mr B  . 

Section  194 Q  applicable  , becuase buyers turnover exceeds  10 crore  and  purchase  is more  than  50 lakhs 

TDS  

52  lakhs -  50  lakhs =  2  lakhs 

TDS  rate  @ 0.1 %   on  2 lakhs =  200 

Amount  of  TDS  RS  200 /- deductible 

More details  please refer section 194 Q