TDS applicable to all advance payments for goods,

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This discussion clarifies the applicability of Tax Deducted at Source (TDS) on advance payments made for goods. It highlights that TDS is generally deductible when booking the purchase or making the payment, whichever comes first. Specifically addressing Section 194Q, the advice confirms that TDS should be deducted on advance payments if the total transaction value is expected to exceed ₹50 Lakhs, with the deduction occurring once the payment crosses this threshold.

Magesh

Magesh (Querist)
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15 April 2024 Dear All,

TDS applicable to all advance payments for goods,

For example,
The vendor from whom we are purchasing the goods,

a) First invoice basis value Rs.10 Lakhs
b) Second invoice basis value Rs.20 Lakhs
c) Third invoice basis value Rs.15 Lakhs
d) Fourth Advance paid for goods Rs.8 Lakhs (Basis Value)
Total value Rs.53 Lakhs

Please advise me whether the TDS will be deducted on the above,

ASHWANI DHANUKA

ASHWANI DHANUKA (Expert)
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15 April 2024 TDS is to be deducted while booking the purchase or payment which ever is earlier. Hence, TDS is need to be deducted at the time of advance payment

Magesh

Magesh (Querist)
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15 April 2024 Thanks for your reply sir,
But am talking about the 194Q section kindly advice for the same