FAQ on 194Q – TDS on purchase of goods

The Finance Act 2021 inserted a new section, Section 194Q, providing for Tax Deducted at Source (“TDS”) on purchase of goods with effect from July 1, 2021. The key elements of the section 194Q are explained in the note. Most commonly discussed questions are elucidated for the benefit of the readers.

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194Q – TDS on purchase of goods