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TDS u/s 194 Q

22 August 2022

Hi, kindly advice on the following:

Limit of 50 lacs needs to be observed every year or only once. I mean if we were deducting TDS in FY 2021-22 we will be keep deducting TDS on 1st purchase by the same Vendor on or after 1-4-22 OR need to wait for purchase of more than 50 lacs ?

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10 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160692 Points)
Replied 22 August 2022

The limit of Rs. 50 lakhs for each financial year have to be taken for the purchase of goods.

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MPR Sanjay Kumar (3005 Points)
Replied 22 August 2022

@ Honourable Dhirajlal sir please,

Jain enterprises is a leading distributor of petrol,detail inventory of petrol in hand taken when the books are closed at the end of each month for the end month of June 21 the following information:

1. sales for the month of June 2021 was rupees 30 lakhs 40 thousand

2. general overheads cost ruppes 4 lakhs

3. inventory and beginning 10 thousand litres @ 92 per litre,June 30 2021,10 thousand litres @ 95 per litre

4. closing inventory 13 thousand litres..

compute the following by fifo method

1. valuation of inventory on 30th June 21
2. amount of cost of good sold for June 21
3.profit / loss for the month of june 2021...

please explain this problem with explanation sir kindly

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160692 Points)
Replied 23 August 2022

1. What is the purchase figure during the month?

2. There seems to be error in month end inventory. Whether it is 13 K liter or 10 K liter?

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MPR Sanjay Kumar (3005 Points)
Replied 23 August 2022

@ Honourable Dhirajlal sir,Here clear view

1.) sales for the month of June 2021 was Rs Thirty lakh fourty thousand.

2.) general overheads cost Rs four lakh

3.) inventory at beginning 10 thousand litres @ 92 per litre.

4.) purchases_Jun 1 2021,twenty thousand litres @ 90 per litre, Jun 30 202,ten thousand litres @ 95 per litre.

5.) closing inventory 13 thousand litres...

we are required to compute the following by FIFO method as per AS 2

please explain me this problem sir with workings

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160692 Points)
Replied 23 August 2022

1. Rs. 12,20,000/-

2. Rs. 24,50,000/-

3. Rs. 1,90,000/-

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MPR Sanjay Kumar (3005 Points)
Replied 23 August 2022

@ Humble request Dhirajlal sir,could you please give workings also for deep clarification ..plse sir

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160692 Points)
Replied 23 August 2022

Any manufacturing or trading business that has inventory or stock must follow the accounting principles for the valuation of a stock.

Opening Stock – Value of the closing stock of the previous year
Purchases – Sum of the purchase value and direct expenses incurred during the financial year
Sales – Sum of sales value during the financial year
Closing Stock – Value of closing inventory should be lower of cost or market value
Gross Profit = Opening Stock + Purchases – Sales – Closing Stock

The business should calculate the net profit by deducting other expenses from gross profit.

Here take it as for June month.

Calculate each value as per your understanding...

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