TDS on Purchase of goods - (Section 194Q) With illustration in Tamil

New provision Sec.194Q takes effect from 01.07.2021.
It applies to the following assesses :
I WHO ARE ALL LIABLE :
1. Where your Total Turnover for the Financial Year exceeds Rs. 10.00 crores
2. Your purchases from a Single seller exceeds Rs.50.00 lacs per annum

II HOW MUCH DEDUCTIBLE :
1. You have to Deduct Tax @ 0.1% on total purchases from such person exceeding Rs.50.00 Lacs
2. If your seller has not given you any declaration stating
(i) the details of their Return of Income filed for the past two years
(ii) TDS deductible is to be 5% on purchases exceeding Rs.50.00 Lacs

III WHEN TO BE DEDUCTED :
TDS to be deducted
(i) in the month of purchase, even if the payment is not made
(ii) when advance made for purchases
whichever is earlier

IV WHEN TO BE REMITTED :
TDS to be remitted to the Bank with in 7th of Next month.
V WHEN TO BE INTIMATED TO GOVERNMENT :
Quarterly Return is to be filed on or before
(i) 31th July
(ii) 31th October
(iii) 31th January
(iv) 31th May

VI WHAT TO BE DONE IMMEDIATELY :
1. Get Tax Deduction Account Number (TAN), if not already having
2. Intimate all the sellers to submit declaration, otherwise 2% to be deducted
Model form of declaration to be submitted by the sellers is enclosed herewith.
3. Intimate the Seller that you are liable to Deduct Tax u/s 194 Q. Hence, he should not collect Tax (TCS) u/s 206C. Even, if he collects you have to deduct TDS u/s 194Q

Видео TDS on Purchase of goods - (Section 194Q) With illustration in Tamil канала Mr and Mrs Auditor