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TDS applicability on Material Purchased for Building under Construction

5127 views 3 replies

Vipul Acharya

Account Officer

653 Points Posted on 04 March 2022

Dear Sir,

Kindly confirm do we need to deduct TDS u/s 194Q against purchase of goods/material for Building Construction

Regards

Replies (3)

Quick Summary

TDS u/s 194Q applies on purchase of goods/material including building construction material if buyer turnover exceeds 10 crore and purchases exceed 50 lakh. Rate is 0.1 percent, higher if PAN not available.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211826 Points Posted on 04 March 2022

Yes, if the TDS deduction criteria as per sec. 194Q of IT act satisfied...

shubham cool

2 Points Posted on 04 March 2022

Tds is deducted u/s 194Q @ 0.1% of the amount exceeding 50 lacs. However the rate will be 5% in case the assesse has not furnished PAN

CA Updates ICAI

12 Points Posted on 05 March 2022

Firstly , if you have any contract with seller and you purchased building material for business's Building (not personal purpose) then you have to deduct tds under section 194C
Secondly, if you purchased a material for building(for any Purpose) then Buyer have to deduct TDS of seller if he purchase goods for more than 50Lacs in a year and
for this section 'Buyer' means a person if your business sale is more than 10cr in last financial year, it means if your business sale is less than 10cr in last year then sec 194Q will not apply on you and you did not need to deduct tds of seller.