Central Board of Direct Taxes issued New Guidelines under section 194Q of the Income Tax Act.
Dear all,
Your association SIMA is forwarding herewith a Circular No. 13 of 2021, F. No. 370142/26/2021-TPL, dated 30/06/2021, issued by Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India.
Vide the circular, the Central Board of Direct Taxes has issued New Guidelines under section 194Q of the Income-tax Act, 1961 – reg.
Finance Act, 2021 inserted a new section 194Q in the Income-tax Act 1961 (hereinafter referred to as "the Act") which takes effect from the 1st day of July 2021. It applies to any buyer who is responsible for paying any sum to any resident seller for the purchase of any goods of the value or aggregate of value exceeding fifty lakh rupees in any previous year. The buyer, at the time of credit of such sum to the account of the seller or at the time of payment, whichever is earlier, is required to deduct an amount equal to 0.1 % of such sum exceeding fifty lakh rupees as income tax.
To view the full Circular, PLEASE CLICK HERE.
ThankingYou,
With regards,
For Silvassa Industries & Manufacturers Association
Narendra Trivedi
Secretary
