With the introduction of section 194Q of the Income-tax Act, TDS or Tax Deducted at Source was implemented for the 1st time, on the purchase and sale of goods.
With the above law in place, any buyer whose total turnover for the previous financial year exceeds Rs 10 cr will be required to withhold a small amount (0.1% / 5%) of the sum payable to the seller and deposit the same with the government as TDS. This will be applicable for all transactions from July 1, 2021, exceeding Rs 50,00,000.
This will result in increased compliance, both for the buyers and sellers. While the buyer would be required to deduct taxes, make requisite deposits, issue tax certificates, the seller would have to keep track of all payments, reconcile TDS deducted with payments and ensure that TCS (where applicable) is avoided where the buyer is liable to deduct TDS.
Today’s technology (ERPs, Sales Force Automation etc) needs to assist businesses in making these processes simpler by providing control and automation. With the ability to track and record relevant information, a lot of time and effort could be saved in unnecessary tax complications.
Bizom’s solution is aimed at making business simpler. Our TDS module is recommended to every company as it is highly impossible to know if every single of your buyer is required to deduct TDS or not. However, what is possible is to ensure that you as a company can track all the information available!
Connect with our team at firstname.lastname@example.org to make business simpler – Today!