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TDS not deducted

Jatin (Accountant) (3479 Points)

24 September 2019

Dear Experts,

TDS not deducted on payment to Google AdWords

Total Payment 105000 including GST

All bills under 30000

please advice tds deduct or not

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10 Replies

naveen Varshney (2 Points)
Replied 24 September 2019

Yes, TDS is required to be deducted due to payment is more than 100000 rs.

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Ravi SADhiyan (Practice) (4510 Points)
Replied 24 September 2019

I think Great Ratan Tata Sir was absolutely correct

Now we need MBA's to "RUN" ICAI PAPER EVALUATION SYSTEM

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 24 September 2019

@ Mr Ravi SADhiyan.,

what is your post dear...?! 😇

Kapadia Pravin (17259 Points)
Replied 24 September 2019

@ Jatin
Though TDS to be deducted on payment without GST which may come below 1 lakh buy as far as 194C is concerned - payment for TDS eligibility will be 105000 and hence TDS dedutible

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 24 September 2019

No.... TDS not applicable if basic value not exceeding Rs. 100000

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Suresh Thiyagarajan (Student) (3986 Points)
Replied 24 September 2019

1. It is very amusing to observe that sec 194C is applicable if the payment made to the other person during the year exceeds Rs. 1 lakhs. For considering the threshold limit for the purpose of sec 194C, GST component is included.
2. Going by the provision it clearly states that "sums credited or paid or likely to be credited or paid during the financial year exceeds one lakh rupees". So in your case Rs. 105,000 should be considered for the purpose of sec 194C and TDS @ 2% is to be deducted excluding GST on Rs.105,000 and balance amount is to be remitted to GoogleAdwords.
Please correct me if the above solution has an alterantive view.