Is tds u/s 194Q deducted on GST value also or basic value?
5 Replies
Sounik Mukherjee
(Area Manager (Taxation))
(101 Points)
Replied 01 June 2022
Accordingly with respect to TDS under section 194Q of the Act, it is clarified that when tax is deducted at the time of credit of amount in the account of seller and in terms of the agreement or contract between the buyer and the seller, the component of GST comprised in the amount payable to the seller is indicated separately, tax shall be deducted under section 194Q of the Act on the amount credited without including such GST. However, if the tax is deducted on payment basis because the payment is earlier than the credit, the tax would be deducted on the whole amount as it is not possible to identity that payment with GST component of the amount to be invoiced in future.
Eswar Reddy S
(CFO- at NHTF)
(58270 Points)
Replied 03 June 2022
If base value is 1 crore and GST 18Lacs then Tds under section 194Q will be on 1 crore.
50lacs exemption may be availed
50lacs exemption may be availed
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