Circular dated 30th June 2021 for the Guidelines under section 194Q of the Income-tax Act, 1961 –CBDT
View PdfCircular dated 30th June 2021 for the Guidelines under section 194Q of the Income-tax Act, 1961 –CBDT
- It has come into effect from 1st of July 2021.
- It applies to any buyer who is responsible for paying any sum to any resident seller for purchase of any goods of the value or aggregate of value exceeding fifty lakh rupees in any previous year.
- Central Government has been authorised to specify by notification in the Official Gazette, person who would not be considered as buyer for the purposes of this section.
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Guidelines:
o Applicability on transactions carried through various Exchanges
o Calculation of threshold for the financial year 2021-22.
o Adjustment for GST, purchase returns
o Whether non-resident can be buyer under section 194Q of the Act?
o Whether tax is to be deducted when the seller is a person whose income is exempt?
o Whether tax is to be deducted on advance payment?
o Whether provisions of section 194Q of the Act shall apply to buyer in the year of incorporation?
o Whether provisions of section 194Q of the Act shall apply to buyer if the turnover from business is 10 crore or less?
o Cross application of section 194-0, sub-section (lH) of section 206C and section 194Q of the Act.
