TDS on purchases: buyers must deduct tax at source on payments or credits to resident sellers when statutory thresholds are met. Buyers whose preceding year business turnover exceeds the prescribed threshold must deduct tax at source under section 194Q at the time of payment or credit (whichever is earlier) on purchases from resident sellers when aggregate purchases in the previous year exceed the prescribed limit; advance payments are covered. Exclusions include transactions cleared through recognized exchanges or clearing corporations, power exchanges trades, purchases by non residents not connected to a PE in India, and purchases from persons wholly exempt from income tax. GST, purchase returns, and cross application with other TDS/TCS provisions are subject to the specific adjustments and hierarchy set out in the guidelines.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
TDS on purchases: buyers must deduct tax at source on payments or credits to resident sellers when statutory thresholds are met.
Buyers whose preceding year business turnover exceeds the prescribed threshold must deduct tax at source under section 194Q at the time of payment or credit (whichever is earlier) on purchases from resident sellers when aggregate purchases in the previous year exceed the prescribed limit; advance payments are covered. Exclusions include transactions cleared through recognized exchanges or clearing corporations, power exchanges trades, purchases by non residents not connected to a PE in India, and purchases from persons wholly exempt from income tax. GST, purchase returns, and cross application with other TDS/TCS provisions are subject to the specific adjustments and hierarchy set out in the guidelines.
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