Monday, July 5, 2021

TDS Amendments on Purchases Under Section 194Q effective from 01.07.2021

 


Guidelines  Issued  on 194Q of Income Tax Act

 Circular No.13 of 2021

The newly inserted section, 194Q which takes effect from 1st July, 2021 applying on:

 any buyer who is responsible for paying any sum to any resident seller for purchase of any

goods of the value or aggregate of value exceeding fifty lakh rupees in any previous year.

The buyer, at the time of credit of such sum to the account of the seller or at the time of

payment, whichever is earlier, is required to deduct an amount equal to 0.1 % of such sum

exceeding fifty lakh rupees as income tax.

 Few clarifications are made to remove difficulties in implementation of the Section.

Amendments and applicability at a Glance 

Please Click to see the amendments and applicabilty at a glance

Compliled by Ms Shivangi at Sandeep Ahuja & Co.