It is proposed to insert new section 194Q to provide for TDS by the person responsible for paying any sum to any resident for purchase of goods (Not applicable on Services).

It may be noted:

1. The rate of TDS is 0.1%.
   
2. Not having PAN, TDS shall be 5%.
   
3. Applicable on BUYER whose turnover from the business exceeds Rs 10 Cr in previous FY .
   
4. TDS is required to be deducted if you had purchased goods from the seller of value or aggregate of such value exceeding Rs 50 Lacs in the immediately preceding financial year.
   
5. These provisions shall not apply to,- (i) a transaction on which TDS is deductible under any provision of the Act; and (ii) a transaction, on which TCS is collectable under section 206C other than a transaction to which section 206C (1H) applies.
   
6. To be effective from 1st July, 2021.
   

If on a transaction either TDS or TCS is applicable, then it would not be subjected to TDS under this section.

Exception: If on a transaction TCS is required under sec 206C (1H) i.e. Sales of Goods, as well as TDS under this section, then on that transaction only TDS shall be deducted. NO TCS REQUIRED TO BE COLLECTED.