Section 194Q: TDS on purchase of goods
Applicable to the Buyer whose Turnover/Gross Receipts in the preceeding Financial year exceeds 10Cr. and aggregate amount of purchases from such particular buyer exceeds Rs.50L. -TDS is required to be deducted @1% on the amount exceeding Rs.50L (The threshold limit of Rs.50L is to be reckoned from the beginning of the Financial year. i.e., 01.04.2021.) -In the absence of PAN of the seller, TDS is required to e deducted @5%.
Section 206AB: Special provision for the deduction of TDS for Non filers of Income tax Return:
- If any person who is required is deduct the TDS under the provisons of Chapter XVIIB of the Income Tax Act except under the following sections:
- And the transaction is carried out with the specified person(who has not filed the income tax return for the two immediate preceeding financial years and whose time period for filing the same has been lapsed (i.e., 2018-19 and 2019-20)
- Aggregate amount of TDS and TCS exceeds 50000 in each of the financial year.
It is the responsibility of the deductor to ascertain the rate of TDS. For the purpose of this section, the Deductor will be required to take declaration regarding filing or non filing of Income Tax Return.