We at B.D. Jokhakar & Co. explain the provisions of Section 194Q, introduced by the Finance Act 2021, which requires buyers with turnover exceeding Rs. 10 crores to deduct TDS at 0.1% on purchases of goods above Rs. 50 lakhs from a resident seller, effective 1st July 2021. We cover the applicability conditions, rate of deduction, interplay with TCS under Section 206C(1H), CBDT clarifications, practical examples, GST treatment, and include draft Intimation and Confirmation Letters for buyers and sellers to determine which provision applies to their transactions.
