ASHISH SABLE asked 2 months 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.

1 Answers
Aarti Arora answered 2 months 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).
To read more about 194Q Click here. All doubts about 194Q are cleared here…

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