Section 194Q....

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This query is : Resolved

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This discussion clarifies whether the GST amount should be included when calculating the ₹50 lakh purchase limit under Section 194Q. The consensus is that GST is not included in the threshold calculation, as the section refers to the 'value' of the goods. TDS should therefore be deducted on the amount excluding GST.

Gourav dewangan

Gourav dewangan (Querist)
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30 June 2021 Whether 50 lacs shall include gst amount for the purpose of purchase limit of 50 lacs under section 194Q

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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30 June 2021 To my understanding, no.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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01 July 2021 No need to consider GST amount to check the threshold,becuse the wording of clause(1) is "........ for purchase of any goods of the value........".

Gourav dewangan

Gourav dewangan (Querist)
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01 July 2021 Thanks for the reply.
One more question. On which amount TDS to be deducted, whether excluding gst or including gst

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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01 July 2021 Excluding GST

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