anita (trainee) (514 Points)
27 August 2021An assessee is liable to deduct tis under 194Q.
HE has two query
he has already paid more than 50 lakhs before 1.7.2021 so should he deduct TDS from the first payment in July or wait for 50 lakhs payment to cross in july
Secondly should he deduct 0.1% on basic or basic plus gst ?
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 27 August 2021
1) TDS to be deducted on all payments w.e.f. 1st July 2021
2) @ 0.1% of the amount paid in case of advance payments if PAN available (if paid against invoice, then 0.1% of the value excluding GST)
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 27 August 2021
This was not clear from the original query.
If either payment or purchase is prior to 1st July, no TDS would apply u/s 194q on such transactions.
Baskar
(CMA)
(93 Points)
Replied 27 August 2021
Hi,
The limit of Rs.50 Lakhs is calculating from the beginning of the FY-2021-22 (i.e., 01.04.2021). when your payment crosses the limit you have to decuct tax and the Tax should be deducted on basic value
Baskar
(CMA)
(93 Points)
Replied 27 August 2021
yes even if the invoice dated in Jun, if you are going to make payment in now and the 50 lakhs limit is crossed, you have to deduct TDS.
If seller has charged TCS on sale of good u/s 206C(1H), then you may ignore. but otherwise you have to deduct TDS.
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 27 August 2021
CAclubindia
