Communication Regarding deduction of TDS under section 194Q- TDS on Goods exceeding 50 Lakhs

Finance Act 2021 has introduced new Section 194Q, where Buyer is required to deduct TDS on goods purchases at the rate of 0.1% on the aggregate value exceeding Rs. 50 lakhs in a financial year, if Buyer has turnover above Rs. 10 Crore during the preceding financial year

Therefore it is important for an entity having turnover more than 10 Crore to inform the supplier about its responsibility to deduct TDS.

A draft of the same communication enclosed for the benefit of the readers.

Communication Regarding deduction of TDS under section 194Q and TCS under section 206C.doc

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