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TDS U/s 194Q in the FY22-23

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Vaib

Sr. Accountant

34 Points Posted on 22 April 2022

Dear Sir,

My query is regarding TDS u/s 194Q on purchase of any goods. As we are deducting TDS u/s 194Q on purchase of Goods in the FY 2021-22 on the above 50L.

For the current FY2022-23, what we have to do. We have to deduct TDS from Rs. 1 whose TDS was deducted in the FY21-22 or we have to deduct when the limit cross.

Eg. We have deducted TDS u/s 194Q of Mr. X in the FY21-22. Now we started purchase from X of Rs. 10,00,000/- in April2022.

1. Should we have to deduct TDS on it now or not?

If not yet--- 2nd condition

2. Assume Purchase from X is Rs.54,00,000/-. In this condition on which amount we have to deduct TDS ?

On 4,00,000/- or on 54,00,000/-

Kindly clarify.

Replies (3)

Quick Summary

This discussion clarifies the application of TDS under Section 194Q for the financial year 2022-23 concerning the purchase of goods. The key point is that the Rs 50 lakh threshold for TDS deduction resets each financial year. Therefore, even if TDS was deducted in FY 2021-22, the current financial year's purchases begin from zero. TDS is only applicable when the total purchase amount in FY 2022-23 exceeds Rs 50 lakhs, and it should be deducted on the amount exceeding this limit.

debora M

BUSINESS DEVELOPMENT MANAGER

1382 Points Posted on 22 April 2022

The buyer of products shall be construed in accordance with the definition of Buyer stated in the explanation to Section 194Q. In any previous year, the amount or sum of values must have exceeded 50 lakhs. TDS will be levied at a rate of 0.1% on amounts in excess of 50 lakhs

CA Raj Doshi

Practising CA

5649 Points Posted on 23 April 2022

TDS to be deducted in FY 22-23 when purchase exceeds 50 lakhs. However, you can voluntary deduct 0.1% on all bills if you estimate purchase will cross 50 lakh limit.

TDS to be deducted on Rs. 4 lakhs in your case.