{"id":1007,"date":"2021-06-16T12:06:00","date_gmt":"2021-06-16T12:06:00","guid":{"rendered":"https:\/\/ventureasy.com\/blog\/?p=1007"},"modified":"2024-02-19T08:38:22","modified_gmt":"2024-02-19T08:38:22","slug":"new-section-194q-tds-on-purchase-of-goods","status":"publish","type":"post","link":"https:\/\/ventureasy.com\/blog\/new-section-194q-tds-on-purchase-of-goods\/","title":{"rendered":"New Section 194Q – TDS on Purchase of Goods"},"content":{"rendered":"\n

In the Budget for FY 2021-22, a new section 194Q has been introduced which is related to payment of certain sum for purchase of goods.<\/p>\n\n\n\n

As per this section, any person, being a buyer <\/strong>who is responsible for paying any sum to any resident<\/strong> for purchase of any goods of the value or aggregate of such value exceeding INR 50 lakhs <\/strong>in any previous year<\/strong>, shall, deduct TDS @0.1% on the total value of the transaction.<\/p>\n\n\n\n\n\n\n\n

Here \u201cbuyer\u201d<\/strong> means a person whose turnover in the preceding financial year exceeds INR 10 crore (exclusive of GST).<\/p>\n\n\n\n

Applicability:<\/u><\/strong><\/p>\n\n\n\n

– This section (194Q) is applicable from 1st<\/sup> July 2021.<\/strong><\/p>\n\n\n\n

–<\/strong> A Buyer need to deduct TDS under this section whose turnover during 2020-21 exceed 10 Crore<\/strong>.<\/p>\n\n\n\n

– Purchase of goods during the year 2021-22 exceeds 50 Lakhs<\/strong>.<\/p>\n\n\n\n

Rate of TDS:<\/u><\/strong><\/p>\n\n\n\n

– Rate of TDS will be 0.1%<\/strong><\/p>\n\n\n\n

– If PAN is not furnished<\/strong> then applicable TDS rate shall be 5%.<\/strong><\/p>\n\n\n\n

Point of taxation:<\/u><\/strong><\/p>\n\n\n\n

– TDS shall be deducted at the time of credit in the books of accounts or at the time of making payment, whichever is earlier.<\/p>\n\n\n\n

Non-compliance of section 194Q: <\/u><\/strong> If the Buyer fails to deduct TDS, 30% of the expenditure will be disallowed.<\/p>\n\n\n\n

Others:<\/u><\/strong><\/p>\n\n\n\n

– TDS to be paid by 7th<\/sup> of the subsequent month for April to February and 30th<\/sup> April for March.<\/p>\n\n\n\n

– TDS return will be furnished under 26Q<\/p>\n\n\n\n

– Form 16A to be issued to the vendor <\/p>\n\n\n\n

Exemption:<\/u><\/strong><\/p>\n\n\n\n

– This section is not applicable to a person whose TDS deductible under any other provision of the Act<\/p>\n\n\n\n

– This section is not applicable to a person whose TCS deductible under any other provision of the Act, other than Sec 206C(1H)<\/p>\n","protected":false},"excerpt":{"rendered":"

In the Budget for FY 2021-22, a new section 194Q has been introduced which is related to payment of certain sum for purchase of goods. As per this section, any person, being a buyer who is responsible for paying any sum to any resident for purchase of any goods of the value or aggregate of … <\/p>\n

Continue reading “New Section 194Q – TDS on Purchase of Goods”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":["post-1007","post","type-post","status-publish","format-standard","hentry","category-income-tax"],"yoast_head":"\r\nNew Section 194Q - TDS on Purchase of Goods - VenturEasy<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/ventureasy.com\/blog\/new-section-194q-tds-on-purchase-of-goods\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"New Section 194Q - TDS on Purchase of Goods - VenturEasy\" \/>\r\n<meta property=\"og:description\" content=\"In the Budget for FY 2021-22, a new section 194Q has been introduced which is related to payment of certain sum for purchase of goods. 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