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Query related to 194C TDS

17 August 2022

I have one related to section 194C i.e.
I had contract with one party related to transport. The party(individual) had provided me a service and raise a tax invoice of rupees 31360 which includes gst of 3360 (28000+3360=31360).
Whether I have to deduct a TDS of him or not.

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2 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177824 Points)
Replied 17 August 2022

If GST is charged separately, no need to deduct TDS, provided that is the only payment to be made..

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Adv. Ravish Bhatt, ADIT, CIOT (Dual Qualified Lawyer/ Solicitor International Tax Affiliate CIOT) (1110 Points)
Replied 17 August 2022

As the amount payable for transport services is less than 30000, no deduction at source required in terms of s.194C(5). However, proviso to said section needs to be kept in mind, which reads:-

"Provided that where the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year exceeds one lakh rupees, the person responsible for paying such sums referred to in sub-section (1) shall be liable to deduct income-tax under this section."

So if you have paid or are likely to pay an amount of more than one lac rupees in the same financial year, deduction at source is required even if individual transaction value is less than 30000