Sir component do we consider to calculated tds threshold limit u/s 194C
Amount with gst
or
Only exp amount??
6 Replies
Vipul Acharya
(Account Officer)
(647 Points)
Replied 08 October 2019
Only Expense Amount to be taken
Kapadia Pravin
(17259 Points)
Replied 08 October 2019
TDS is required to be deducted on payment amount before GST.
However threshold limit for Section 194C.
The payer has to deduct Tax at Source from the sum to be paid to the contractor or sub-contractor where; The total sum credited or paid during the financial year exceeds Rs. 1 lakh or Any single sum credited or paid exceeds Rs. 30, 000.
So for threshold purpose limit is based on full amount including GST
However threshold limit for Section 194C.
The payer has to deduct Tax at Source from the sum to be paid to the contractor or sub-contractor where; The total sum credited or paid during the financial year exceeds Rs. 1 lakh or Any single sum credited or paid exceeds Rs. 30, 000.
So for threshold purpose limit is based on full amount including GST
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 08 October 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 if the sum paid during the year to a party exceeds Rs. 1 lakh then TDS u/s 194C needs to be deducted. But at the time of deducting the amount of TDS GST component should be excluded. As explained by Mr. Pravin.
Please correct me if the above solution has an alternative view.
sabyasachi mukherjee
(27574 Points)
Replied 09 October 2019
@ kapadia
what does the word credit means
It means when the bill is received after the due
date.
the expenses accrues on due date.
IF THE BILL IS NOT ACCOUNTED FOR.
THEN ITS LIABILITY HAS TO BE ACCOUNTED FOR THAT IS A SEPERATE ACCOUNT.
what does the word credit means
It means when the bill is received after the due
date.
the expenses accrues on due date.
IF THE BILL IS NOT ACCOUNTED FOR.
THEN ITS LIABILITY HAS TO BE ACCOUNTED FOR THAT IS A SEPERATE ACCOUNT.
sabyasachi mukherjee
(27574 Points)
Replied 10 October 2019
@ Sandeep
the threshold limit of Rs. 1 lac is mentioned for the entire financial year.
For a single teansaction its Rs.30000.
the threshold limit of Rs. 1 lac is mentioned for the entire financial year.
For a single teansaction its Rs.30000.
Recent Topics
- Avoiding tax audit in case of intraday equity loss
- Form 3CEAB
- Form 3CEAA and Form 3CEAB
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
Related Threads
CAclubindia
