Tara Khandelwal (Student CA Final ) (298 Points)
14 July 2021Hello everyone
1) I have a query related to deduction of 194Q. Whether it has to be deducted on taxable value or invoice value inclusive of GST & Freight. Also some charge Freight along with goods purchased and GST is charged only on goods and not on freight.
What would be the Purchase value on which TDS @ 0.1%
2) Whether TDS under 194Q is deductible on Monthly electricity bill paid in excess of Rs.50 lacs ?
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 14 July 2021
1) Tax to be deducted at source u/s 194Q on value excluding GST provided the GST portion is separately disclosed on the invoice. As I understand, TDS would apply even on freight charges.
2) As per CBIC circular, transactions in electricity is not covered under section 194Q. Though am not sure whether all such transactions are covered under this exception.
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 14 July 2021
Balamurali Unnithan MS
(STUDENT)
(1631 Points)
Replied 14 July 2021
Susmita Dutta, CA , CPA
(CA )
(2141 Points)
Replied 15 July 2021
If the freight is included in the total invoice value then TDS u/s 194 Q is Applicable and if a separate freight and the incidental charges invoice is raised then excluded.
This section is not applicable to: transactions in electricity, renewable energy certificates and energy saving certificates traded through power exchanges registered in accordance with Regulation 21 of the CERCc
Ajit kumar Jha
(Article assistant)
(23 Points)
Replied 25 November 2022
As the section uses the word "goods" (Any person, being a buyer who is responsible for paying any sum to any resident (hereafter in this section referred to as the seller) for purchase of any goods of the value or aggregate of such value exceeding fifty lakh rupees.
so no TDS under this section shall be deducted on service amount.
Thanks & Regards
Ajit Jha
CAclubindia
