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194 (Q) Set Up Document
194 (Q) Set Up Document
Introduction:-As per Budget 2021, Section 194Q has been introduced where in the tax shall
be deducted under Section 194Q by a buyer carrying on a business whose total sales, gross
receipts or turnover from the business exceeds Rs. 10 crores during the financial year
immediately preceding the financial year in which such goods are purchased. This provision
shall be applicable from 01-07-2021. Also this provision will be attracted if the Purchase is
more than Rs 50 Lakhs from a vendor. TDS rate is 0.1%.
3. Add a new row for Section 194Q and provide value in Tag Field as "W".
4. Save changes.
2 Define Tax Rate
3. Define for all the vendors for whom purchase of goods exceeds Rs 50 Lakhs.
4. Setup need to be performed first without site and without operating unit
(Exception)
2. Tax Configuration > Define Tax Type > Define New Tax Type
Please note when you are enabling this flag TDS will be generated on GST
tax lines also. Hence here it is better to have separate tax type created for
GST taxes for 194Q purpose otherwise if same GST taxes used and applied
to transaction then TDS will be calculated under different section also.
Dtd:-1-Dec-2022