09 July 2021
Please advise for TDS u/s 194 Q for following transaction / condition :
1) TDS u/s 194Q (TDS on purchase) is applicable at the time of payment or credit which ever is earlier. 2) If TDS deducted on advance payment against purchase , the TDS will be deducted on full amount i.e. inclusive of GST . 3) If TDS deducted on credited basis , the TDS will be deducted on net amount i.e. the amount excluding GST. 4) Now my query is if partially payment made in advance and balance after received the material, what are effect of TDS u/s 194Q , how TDS amount calculated ?
09 July 2021
When a partial payment is made in advance, deduct tax at source on gross value. When the invoice is received, deduct tax at source for the balance on the net value after reducing the advance paid.
CAclubindia
