Household goods

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the treatment of GST when calculating Tax Deducted at Source (TDS) under Section 194Q for household goods purchases. While GST is generally excluded from annual turnover calculations, it is included when determining the TDS amount, specifically at a rate of 0.1%. The Central Board of Direct Taxes (CBDT) has provided clarification on this matter via Circular 23/2017.

Rajkumar Gutti

Rajkumar Gutti (Querist)
Follow

20 March 2025 Grocery purchased for poor people donatio
For tds under 194 q limit crossed.
For deducting tds can gst taken into consideration or not.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

21 March 2025 GST (Goods and Services Tax) has a specific role in Section 194Q of the Income Tax Act. GST is excluded from calculating the total turnover of a financial year. However, when calculating the TDS (Tax Deducted at Source) to be paid under Section 194Q, GST is included at a rate of 0.1%.

Rajkumar Gutti

Rajkumar Gutti (Querist)
Follow

21 March 2025 Sir is there any notification, circular for reference