194 Q DEDUCTION

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This discussion clarifies the application of TDS Section 194Q, specifically regarding the deduction of tax concerning GST. While some interpretations suggest TDS is deductible on the purchase value inclusive of GST, a CBDT circular indicates it should be on the value excluding GST. The 50 lakh threshold limit for this section is also clarified to exclude the GST component.

MURALI THARAN

MURALI THARAN (Querist)

27 June 2021 Can any one clarify the new TDS 194 Q.

How to deducted the TDS before GST value or full invoice value ?

The 50 Lakh threshold limit is including GST?

CA Altamush Zafar

CA Altamush Zafar (Expert)

28 June 2021 Before GST. 50 Lakhs do not include GST amount.

Ganeshbabu K

Ganeshbabu K (Expert)

28 June 2021 Section 194Q is to be made with reference to the purchase value, & GST shall form part of the purchase value, therefore, the TDS is deductible on the purchase value inclusive of GST.

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

28 June 2021 Tax at source u/s 194Q to be deducted on the value excluding GST (on the basis of a circular from CBDT in respect of TDS on services). Thus the threshold limit of Rs.50 lacs does not include GST component in it.

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