CA Classes

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

TDS U/S 194Q

This query is : Resolved 

Sir, on which amount TDS to be deducted u/s 194 Q i.e. on Total Invoice Value or Value before GST )

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.

I think this is debatable.
As TCS is collected on receipt of consideration, it is logical to include GST while computing TCS whereas in case of TDS, liability to deduct tax at source is on credit/payment whichever is earlier. So can we not treat 194Q too on the lines of other TDS sections?
Further, on the basis of CBIC circular in case of TDS on professional charges in which CBIC had clarified that no TDS was applicable on tax component, can we not take the benefit of the same in respect of goods too till we get a specific clarification from CBIC?

sec 194Q GST levied as part of the invoice shall not considered for TDS in view of the clarifications from CBDT vide circular no. 23/17 dated 19-07-2017. like any other tds u/s 194 GST is not consider for TDS

Yes...we should not charge Tax on Tax. This will not logically correct to do so.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries


Trending Tags