TDS 194Q Purchase of Goods

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies whether TDS under section 194Q applies to a purchase of goods exceeding 50 lakhs. The key question is whether the threshold is based on the value of the goods alone or the total invoice value, including GST. The consensus is that TDS is applicable if the invoice value surpasses the 50 lakh limit.

nitin

nitin (Querist)
Follow

09 August 2024 My doubt is
A company (Buyer) purchased goods 45,00,000 + GST 5,40,000 = 50,40,000 goods from B company (seller). Turnover of Buyer in preceding PY more than 10 crores.
is TDS u/s 194Q applicable to above transaction?
Answer 1: Not applicable as goods value is not exceeding 50 Lakhs
Answer 2 : TDS applicable as Invoice Value exceeds 50 Lakhs
which answer is correct? Plz guide