ASHISH SABLE asked 2 years ago
Dear sir,
i know about TDS section 194Q. LIke that – i purchased goods any vendor of Rupee 51,00,000/- is gross amount and tax rate is 18%, then i confued that TDS deduct witch amount taxable or gross amount. if we take taxable amount so purchased is 4322033/- but gross amount is corssed 50 lakh limit.
Aarti Arora answered 2 years ago
Dear Ashish,
TDS u/s 194Q is deducted only on basic amount (excluding GST) but TCS u/s 206C(1H) is collected on gross amount including GST. (circular no. 17 of 2020 does not apply to 194Q)
IN your example, if payment is being made against invoice of rs. 5100000/- (basic 4322033/- plus GST) and if there is no other transaction in the FY with this vendor ..then value of transaction is below limit given in 194Q and tds is not required to be deducted.
But if you are an eligible buyer(turnover in last FY is more than Rs. 10cr.) and you are making advance payment for Rs. 5100000/- without value being segregated between basic & gst.(invoice will be provided later and this is only transaction in this FY). then you are required to dected tds u/s 194@ on Rs. 100000/-(ie. 51 lakh – 50 lakh).
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