2021-05-26 3032781

3032781 - Amendment changes to Section 194Q TDS -

Updates
Version 3 Type SAP Knowledge Base Article
Language English Master Language English
Release Status Released to Customer Category Problem
Component XX-CSC-IN-FI (Financial Accounting) Released On 19.05.2021

Please find the original document at https://launchpad.support.sap.com/#/notes/3032781

Symptom

In the recent budget for Fiscal year 2021, a new amendment was introduced with respect to TDS (Tax
Deducted at Source) for section 194Q. This knowledge based article aims at helping customers receive
notifications regarding the solution.

Environment

• Financial Accounting
• SAP ERP Central Component
• SAP ERP
• SAP enhancement package for SAP ERP
• SAP enhancement package for SAP ERP, version for SAP HANA
• SAP S/4HANA
• SAP S/4HANA Finance
• This is relevant for India Localization or Country India Version (CIN) component.

Cause

As per the budget 2021, government has introduced TDS u/s 194Q on purchase of goods of the value or
aggregate of such value exceeding 50 Lakh INR in any FY shall at the time of credit of such sum to the
account of the seller or at the time of payment thereof by any mode, whichever is earlier, deduct an amount
equal to 0.1 per cent. of such sum exceeding fifty Lakh rupees as income-tax.

Resolution

As per the current information received, the legal changes will be effective from 1st July, 2021.

Implement the below note :

3035980 - Tax deducted at source u/s Section 194Q - Budget 2021 Changes

Also refer below mentioned FAQ note for any queries:

3033325 - FAQ on Tax Deducted at Source (TDS) u/s 194Q

In order to receive further solution updates regarding the recent 'Amendment to Section 194Q Tax Deducted
at Source(TDS)', refer the LCNaas link.

This legal change notification link will be updated with required notes and solution approach in a timely
manner.

© 2021 SAP SE or an SAP affiliate company. All rights reserved 1 of 2

2021-05-26 3032781

For more information on how to get notified in case of any change, refer and follow the steps provided in KBA
2382863.

Once the notification settings are in place, you will then be notified (via email and/or SMS) in case of any
changes updated in the link.

Also refer below note:

3044961 - TCS effective from July 1 2021

See Also

2382863 - How to use the Announcement of Legal Changes application - SAP ONE Support Launchpad

2348668 - How to activate (add) a tile from the tile catalogue - SAP ONE Support Launchpad

2381572 - Stay tuned! Do not miss a legal change announcement [VIDEO]

Keywords

TDS, Tax deducted at Source, India, Amendment, budget, 2021, XX-CSC-IN-FI, CIN, Notification, 194Q,
WHT, 0.1%, 10 crore, 50 Lakh.

Products

SAP ERP all versions

SAP S/4HANA Finance all versions
SAP S/4HANA all versions
SAP enhancement package for SAP ERP all versions
SAP enhancement package for SAP ERP, version for SAP HANA all versions

This document refers to

SAP Note/KBA Title

2382863 How to use the Announcement of Legal Changes application - SAP ONE Support Launchpad

2381572 Stay tuned! Do not miss a legal change announcement [VIDEO]

3044961 TCS effective from July 1 2021

3035980 Tax deducted at source u/s Section 194Q - Budget 2021 Changes

3033325 FAQ on Tax Deducted at Source(TDS) u/s 194Q

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