Yes, its right, Finance Bill 2021 has inserted new TDS section 194Q which is for Purchase of Goods EXCEEDING FIFTY(50) LAKH RUPEES IN ANY PREVIOUS YEAR.
- Buyer whose Gross Sales/Turnover exceeds 10 crore in Previous Year, and
- Aggregate amount of purchases from particular buyer in financial year exceed 50 lakhs.
Non-Applicability
- Transaction on which TDS is deductible.
- Transactions covered by TCS under Section 206C (But applicable on transaction covered under 206C(1H) TCS on sale of goods
Rate of TDS
| Particulars | Rate |
| Seller having PAN | 0.1% |
| Seller NOT having PAN | 5% |
What do you think about this TDS section introduced? Let us know in comments section.