In Finance Act 2021, various amendments have been enacted in TDS provisions. The most significant amendment is made by inserting a new Section which mandate to deduct TDS on purchase of goods. It will be a huge compliance for deductor to comply with above section. TDS on purchase of goods will be burdensome and cumbersome.
Already TCS had been imposed on sale of goods vide finance Act 2020 which was collected by seller. Now, responsibility has been cast upon buyer of goods to deduct TDS. Although the above section shall not be applicable on SMEs, even it is a tedious task to keep track of TDS applicability on transaction of purchase of goods deduct TDS thereon for large taxpayer. Also, interlink between provisions of TDS and TCS on purchase/sale of goods has create lots of confusion.
In this write up we have discussed about the provisions and procedural aspects of the above provisions of TDS which will give you insight about these provisions of TDS on purchase of goods.