What is 194Q in income tax

An entity with turnover exceeding 10 crore in preceding financial year, has to deduct tax for of suppliers (Resident) from whom it has purchased goods worth more than 50 lacs in current financial year. Up to Rs.50lacs no TDS under this section but beyond that TDS @ 0.1% of consideration (with PAN information of supplier made available) . TDS liability is triggered at the earliest of the below mentioned two events:

a. Credit of sum to the account   b. Payment of the sum

As per section 194Q, 'Buyer means a person whose total sales, gross receipts or turnover from the business carried on by him exceed ₹ 10 crore during the financial year immediately preceding the financial year in which the purchase of goods is carried out.

Section 194Q provides that every buyer who is responsible for paying any sum to a resident seller, for purchase of any goods of the value or aggregate of value exceeding Rs 50 lakh rupees in any previous year, shall at the time of credit of such sum to the account of the seller or at the time of payment,