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PORSELVI (Accountant)     22 June 2021

TDS on purchase of goods 194Q

If I purchase from vendor, and it already crossed turnover of 50 lakhs before 1st July, should I collect tds effective from 1st July bills or bills after 50 lakhs turnover

 4 Replies

Prathik Lenin

Prathik Lenin (Chartered Accountant)     23 June 2021

There was a similar confusion with regard to TCS under 206C(1H), which has become effective from 1st October 2020. CBDT had clarified that if the seller has received 50 lakhs or more from 1st April 2020 to 30th September 2020, TCS provisions would apply to receipts after 1st October 2020.

On similar lines, since your threshold limit has already exceeded, you need to deduct TDS on purchases made after 1st July, 2021 as the provisions are effective only on this date. 

You need not deduct TDS on purchases made prior to this date.

sabyasachi mukherjee

sabyasachi mukherjee   23 June 2021

Please explain...
But in the immediate preceding financial year the turnover you hv to mention.
CMA Poornima Madhava

CMA Poornima Madhava (CMA)     23 June 2021

You are required to deduct tax at source u/s 194Q on all purchases from July onwards.

No need to deduct tax at source on purchases (even if >50 lacs) made from Apr to Jun as well as payments made against the same after Jun.

sabyasachi mukherjee

sabyasachi mukherjee   23 June 2021

It seems it's not required.

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