Aryan, a resident individual engaged in the retail trade of auto parts through various stores across Delhi-NCR, had total turnover of 15 crores…

(i) Mr. Aryan is required to deduct tax at source under section 194Q @0.1% on the purchase of goods exceeding 50lakhs without GST since his turnover for the P.Y. 2023-24 exceeds 10crores. The tax is to be deducted at the time of payment or at the time of credit of such sum to the account of Diva, LLP, whichever is earlier. Accordingly, Aryan has to deduct tax of 5,500, being 0.1% of 55lakhs on 21.5.2024. In case of purchase return of 5lakhs and amount is refunded by Diva LLP, tax deducted of 500 (0.1% of 5lakhs) may be adjusted against the next purchase from Diva LLP. (ii) Since Mr. Aryan paid for catering services exceeding - 30,000 and his turnover for the P.Y. 2023-24 exceeds 1crore, he is liable to deduct tax at source under section 194C @1%. The tax is to be deducted at the time of payment or at the time of credit of such sum to the account of Mr. Kulveer, whichever is earlier. Amount of TDS = 77,000 x 12 x 1% = 9,240