We need the deduct the taxable value service to compute the TDS On purchase.

This query is : Resolved

Marimuthu (Querist)
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12 April 2023 Dear Experts,

01. We deduct the TDS on purchase under section 194Q.

02.We avail the some type of services from the same supplier.

03.The query is:
a. Whether we need the deduct the taxable value service to compute the TDS On purchase.

Pl clarify

CA Sanat Pyne

CA Sanat Pyne (Expert)
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12 April 2023 Based on the information provided, it appears that you are deducting TDS under section 194Q on your purchases from a particular supplier. Additionally, you are also availing some type of services from the same supplier.

In order to determine whether you need to deduct TDS on the taxable value of the services received from the same supplier, you will need to consider the provisions of the relevant sections of the Income Tax Act, 1961.

Under section 194Q, TDS is required to be deducted on the purchase of goods where the total purchase value from a particular supplier exceeds Rs. 50 lakh in a financial year. The TDS rate is 0.1% of the purchase value exceeding Rs. 50 lakh.

On the other hand, TDS on services is covered under section 194J/194C of the Income Tax Act. As per this section, TDS is required to be deducted on the payment made for professional or technical services, royalty, and non-compete fees.

Therefore, based on the above provisions, it appears that TDS on services received from the same supplier will not be covered under section 194Q. Instead, you will need to deduct TDS on the taxable value of the services received under section 194J/194C, if applicable.

It is important to note that the applicability of TDS provisions can depend on various factors such as the nature of transaction, the threshold limits, and the residency status of the recipient, among others.