Yes, Ram. That is what I am talking about. The liability of TDS u/s 194Q does not apply to purchases made before 30.06.2021 and if payments for such purchases are made after 1 July 2021. The TDS u/s 194Q deduction only applies to purchases or payments made after July 1. Subject to the provisions of Section 194Q, TDS will be deducted by the buyer @ 0.1% on the “value exceeding the limit of 50 lakhs” (i.e. the purchase amount remaining after 50 lakhs). For example, if you buy goods worth Rs. 60 lakhs on 05-07-2021, you will have to deduct TDS @ 0.1% from Rs. 1000 (60,00,000 minus 50,00,000 = 10,00,000). And when the TDS amount is deducted, it is deposited with the government and this amount is available as a credit to your PAN number. You can get a refund of the TDS amount when you file your tax return. You can also check your TDS balance on Form 26AS on the Income Tax Portal.
Sellers fall under Section 206C(1H) of the Income Tax Act, 1961, which states that if the seller exceeds the turnover of Rs 10 crore in the previous financial year and the sale transaction exceeds Rs 50 lakh in the year, a TCS rate of 0.1% shall be charged by the buyer on the consideration received. However, this provision came into force on October 1, 2020. One. The 2021 Finance Bill introduces a new Section 194Q that requires a person to deduct a 0.10% withholding tax if they pay an amount to a resident (hereinafter referred to in this section as a seller) for the purchase of goods worth more than Rs 50.00 in a previous year. The provisions of this section shall apply from 01.07.2021. And TDS` liability only applies to transactions made after July 1, 2021. All transactions made up to 30. The month of June is only taken into account for the calculation of the threshold.
India ends 2021 on a high note after violating South Africa`s Centurion fortress By India Today Web Desk: The Finance Act 2021 has made major changes to the rules on withholding tax deductions (TDS). The changes are expected to come into force in India from July 1, 2021. The new standards aim to facilitate compliance regulations for companies or businesses and also aim to facilitate the tax payment procedure in the company. 2) TDS for retirement income of seniors (section 194P): This provision, in force since April 1, 2021, was introduced to make people aged 75 and over dependent on filing an income tax return (ITR) under the following conditions: Hello Lord, I had purchased before 30.06.2021 and the invoice is due in July. If I transferred the payment to the party, I can deduct TDs or not. India Briefing is prepared by Dezan Shira & Associates. The company supports foreign investors across Asia from offices around the world, including Delhi and Mumbai. Readers can write to india@dezshira.com for additional help in their business in India. Note: The previous year refers to the fiscal year under the Income Tax Act. As the new rules come into effect on July 1, reporting and compliance with previous fiscal years in fiscal year 2018-2019 and fiscal year 2019-2020 will be taken into account. The 2020-21 financial year is not taken into account because the due date for filing the tax return for the previous year has not yet passed. Note: The previous year is the fiscal year under the Income Tax Act.
Since the provisions are 1. July 2020, returns from previous fiscal years 2018-19 and 2019-20 will be taken into account. Since the tax filing deadline for the 2020-2021 fiscal year has not yet passed, the new rules do not apply to the 2020-2021 fiscal year. and what are the final TD percentages???? If our new company starts from 1-6-21 and it`s not a secret year so, I think (0.1%) TDS. This refers to my question published today on the applicability of TDS to payments made from 01.07.2021 for purchases made by 30.06.2021 at the latest. However, in short, no TDS liability for purchase or payment before June 30, 2021. In your case, TDS 194Q does not apply, even if the payment is made after July 1, 2021. NOTE: 1) Purchases or payments made between April 1 and 30 June 2021, will only be taken into account to determine the threshold of Rs 50 lakhs for the financial year 2021-22, NO TDS deducted for the said period. 2) TDS may be deducted on all purchases recorded or paid from 1 July 2021 u/s 194Q, subject to provisions u/s 194Q (provision u/s 194Q – if the buyer`s turnover exceeds 10 crore in the previous financial year and the purchase value of the goods in a financial year exceeds 50 lakhs). Previously, TDAs applied to payments for services received, but as of July 1, with the insertion of section 194Q, TDAs must also be deducted when purchasing goods at source.
Suppose there was a purchase of Rs 60 lakhs during the period April to June 2021 and another purchase of Rs 30 lakhs on July 5, 2021. Then, in this case, we are forced to subtract TDS at 0.1% to Rs 30 lakhs = Rs 3000/-. There is bad news for those unable to submit the ITRs for fiscal year 2020-21 (AY 2021-22). The same applies to higher TDS, which must apply to specific income, since the revision rules, which apply from 1 April 2022. The last performance date was December 31, 2021. Not necessarily. But this could be the reason why TCS u/s 206C(1H) was charged for this transaction.
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