TDS U/S 194Q
This query is : Resolved
17 June 2021
Sir, on which amount TDS to be deducted u/s 194 Q i.e. on Total Invoice Value or Value before GST )
17 June 2021
Section 194Q is to be made with reference to the purchase value, & GST shall form part of the purchase value, therefore, the TDS is deductible on the purchase value inclusive of GST.
17 June 2021
I think this is debatable.
As TCS is collected on receipt of consideration, it is logical to include GST while computing TCS whereas in case of TDS, liability to deduct tax at source is on credit/payment whichever is earlier. So can we not treat 194Q too on the lines of other TDS sections?
Further, on the basis of CBIC circular in case of TDS on professional charges in which CBIC had clarified that no TDS was applicable on tax component, can we not take the benefit of the same in respect of goods too till we get a specific clarification from CBIC?
As TCS is collected on receipt of consideration, it is logical to include GST while computing TCS whereas in case of TDS, liability to deduct tax at source is on credit/payment whichever is earlier. So can we not treat 194Q too on the lines of other TDS sections?
Further, on the basis of CBIC circular in case of TDS on professional charges in which CBIC had clarified that no TDS was applicable on tax component, can we not take the benefit of the same in respect of goods too till we get a specific clarification from CBIC?
19 June 2021
sec 194Q GST levied as part of the invoice shall not considered for TDS in view of the clarifications from CBDT vide circular no. 23/17 dated 19-07-2017. like any other tds u/s 194 GST is not consider for TDS
20 June 2021
Yes...we should not charge Tax on Tax. This will not logically correct to do so.
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