Section 194Q – Compliance Update

Section 194Q – Compliance Update

Section 194Q has been introduced by Finance Act 2021,which will come into effect from 1 July 2021. According to this section, where any buyer is purchasing any goods of value exceeding 50 Lakhs (Aggregate value for whole year to be considered) in a previous year, shall deduct TDS at the rate of 0.1% of sum exceeding 50 Lakhs. Turnover of the buyer should be in excess of Rs 10 crores during the previous financial year.

Analysis in respect of the same is attached below for reference.

Booklet contains the following:

  • Section 194Q
  • Legal Provision
  • Point of Action Required
  • Case Scenarios
  • Comparative Analysis

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