GST TDS or TCS

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This discussion clarifies the calculation of Tax Deducted at Source (TDS) under Section 194Q of the Income Tax Act. Specifically, it addresses how to apply the 0.1% TDS rate when total purchases from a single party exceed ₹50 lakhs in a financial year. The TDS is deductible on the amount exceeding ₹50 lakhs, not the entire sum.

ARCHANA

ARCHANA (Querist)

23 October 2021 Sir/Mam,

we have purchased 1204500/- material from party and received tax invoice and again we are planning to purchase material nearly 25+25 lakhs from same party how 194Q TDS @0.1% calculate over 72 lakhs or only 50 lakhs please clarify my doubt and kindly explain 194Q Section

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

23 October 2021 TDS u/s 194Q will be deductible over (72-50) 12 lakhs.

The value or aggregate of value should be exceeding Rs.50 lakhs in any Previous Year
The rate of TDS shall be 0.1 per cent of the amount in excess of Rs.50 lakhs.

ARCHANA

ARCHANA (Querist)

23 October 2021 Thank you sir for your quick reply

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

23 October 2021 My Pleasure ....

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