The Union Budget proposes to levy a TDS of 0.1% on a purchase transaction exceeding Rs. 50 lakhs in a year. Such deduction shall lie only on the persons whose turnover exceeds Rs. 10 crores. The budget has proposed to insert the new provision with effect from 1st July 2021.
As per the section, any person who is a buyer responsible for paying any sum to any resident for purchase of any goods having a value of more than Rs. 50 Lakhs in any previous year then such person shall at the time of payment deduct an amount equal to 0.1 percent of such sum as income tax.
‘Buyer’ as provided in the provision means a person whose total sales, gross receipts or turnover from the business carried on by him exceed Rs. 10 Crores during the financial year immediately preceding the financial year in which the purchase of goods is carried out.
The provision will not apply to a transaction on which –
The provision also empowers the Central Board of Direct Tax (CBDT) to issue guidelines, with the previous approval of the central government, for removing any difficulties in the implementation of the provision.Subscribe Taxscan AdFree to view the Judgment