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TDS on purchase 194 q

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Parthiban D

Finance Manager

21 Points Posted on 10 September 2021

Respected sir / Madam

As I have given purchased order for 3 crore but the seller spilts the bills for example some for below ten lakh and some for above fifty lakhs .They have not taken collected TCS from us do I need to pay TDS on total value of PO or against bills

Replies (3)

Quick Summary

This discussion clarifies the applicability of TDS under Section 194Q for purchases. TDS is applicable on the total purchase value exceeding Rs. 50 lakhs in a financial year, to be deducted when the invoice is accounted for or payment is made, whichever comes first. It's also noted that the buyer's sales turnover must exceed Rs. 10 crore in the previous financial year for TDS under 194Q to apply.

CMA Poornima Madhava

CMA

13117 Points Posted on 10 September 2021

Yes, TDS u/s 194Q would be applicable on the purchase value exceeding Rs.50 lacs in a year. Tax to be deducted at source as and when the invoice is accounted or the payment is made, whichever is earlier (after crossing the threshold limit of Rs.50 lacs)