Section 194Q: Analysis on TDS on Purchase of Goods [Amended]

Applicability of Section 194Q:

As per provision of section 194Q of Income Tax Act this section applicable to follwoing buyer

1. A buyer whose turnover or gross receipt or sales in the immediately preceding financial year was more than Rs 10 crore, and
2. A buyer is responsible for making payment of a sum to the resident seller, and
3. Such payment is to be done for the purchase of goods of the value/aggregate of the value exceeding Rs 50 lakh

Rate of TDS u/s 194Q:

• TDS rate is 0.1% of the transaction value of items purchased in excess of Rs. 50 lakhs.
• If the seller fails to provide his or her PAN to the deductor, this rate may be as high as 5%.

Point of Time for Deduction

The TDS is to be deducted earlier of the followings

• At a time when such amount is credited to the seller (Or)
• At a time of payment

TDS is also applicable on the, , if you have made an advance payment.

Due date of TDS deposit and Filing of TDS returns:

The Deductor is liable to deposit TDS with the Government with following dates:

The Deductor is liable to File TDS Returns in the Form 26Q with the Government with following due dates

Due dates for Issue of TDS Statement:

Here the TDS statement means Form 16A which is issued by specified persons who is required to deduct the TDS.

Form 16A is issued to the deductee with the following due dates

Consequences Non compliance of TDS deposit and TDS Return within Due Date: