TaxTMI 
TaxTMI 
AS PER NEW SECTION FOR TDS ON PURCHASE OF GOODS, IS THE DEFINATION OF BUYER HAS BEEN DEFINED YET OR ANY CLARIFICATION BY CBDT IN THIS REGARD.?, AS A NEW COMPANY INCORPORATED IN CURRENT FINANCIAL YEAR HAVING PURCHASES OF FIXED ASSETS >50LACS WOULD TDS BE APPLICABLE CONSIDERING WIDE SCOPE OF "BUYER"?
INCOME TAX TDS ON GOODS SECTION: 393(1) SI.NO. 8(ii)
28 Jul 2026 
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TDS on goods purchases does not apply to first-year companies without the required preceding-year turnover eligibility.
TDS on purchase of goods applies only where the purchaser meets the prescribed turnover or gross-receipts threshold in the immediately preceding financial year. A newly incorporated company with no prior-year turnover does not qualify as an eligible buyer in its first financial year. Purchases exceeding the applicable threshold, including fixed assets or capital goods, do not independently trigger TDS. The possible inclusion of fixed assets within "goods" becomes relevant only after buyer eligibility is established. (AI Summary)
TDS on purchase of goods applies only where the purchaser meets the prescribed turnover or gross-receipts threshold in the immediately preceding financial year. A newly incorporated company with no prior-year turnover does not qualify as an eligible buyer in its first financial year. Purchases exceeding the applicable threshold, including fixed assets or capital goods, do not independently trigger TDS. The possible inclusion of fixed assets within "goods" becomes relevant only after buyer eligibility is established. (AI Summary)