Any person, being a buyer who is responsible for paying any sum to any seller (being a resident) for purchase of any goods (including capital goods), where the value or aggregate of such values, exceeds â‚¹50 lakhs in any P.Y., shall deduct TDS @ 0.1% (5% in case PAN is not furnished) on the purchase value exceeding â‚¹50 lakhs.
This section is applicable only when purchases are made from a resident seller, hence, no TDS shall be deducted in case of imports.
The provisions of this section shall not apply to transactions where:
- tax is deductible under any other section
- tax is collectible under section 206C other than a transaction to which sub-section (1H) of section 206C applies
Rate of TDS: 0.1% (5% in case PAN is not furnished) of the purchase value exceeding â‚¹50 lakhs.
Time of deduction:
Earlier of the following:
- At the time of credit of such sum to the account (even if Suspense A/c) of the seller
- At the time of payment by any mode