New TDS Rules

TDS on Purchase of Goods [Section 194Q]

A buyer shall deduct tax under this provision from the value of goods purchased by it if the following conditions are satisfied:

His total sales, gross receipts, or turnover from the business carried on by him exceeds Rs. 10 crores during the financial year immediately preceding the financial year in which he purchases the goods,

There is a purchase of goods from a resident person;

Value or aggregate value of Goods purchased exceeds Rs. 50 lakhs in any previous year;

The buyer should not be on the list of persons excluded from the provision for deduction of tax; and

No tax is deductible or collectible under any other provision except Section 206C(1H).

Buyer shall deduct tax at the rate of 0.1% of the purchase value exceeding Rs. 50 lakhs at the time of credit of such sum to the account of the seller or at the time of payment thereof by any mode, whichever is earlier. The tax shall be deducted even if the sum is credited to the ‘Suspense Account’.

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