Turnover Definition for TDS & TCS on Purchase & Sales Transactions

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Sanchit (Querist)
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27 April 2022 Dear Sir,
Our Turnover in F.Y. 2021-22 was more than 15 Crore (exclusive of gst),
1) Now in this F.Y. 2022-23, we have purchase some goods from 1 Party & the total Value of Bills was more than 50 lakhs but without gst bills value was less than 50 lakhs. I want to know for calculation of 194Q whether we have to check Transaction Value inclusive of gst or exclusive of gst.
2) For Section 206C (1H) TCS will be levy on Invoice Value inclusive of gst or exclusive of gst.
Kindly Clarify.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 April 2022 1 Check transaction value inclusive of GST.
2 As per Circular No. 17 of 2020 issued by CBDT, no GST adjustments should be made for calculating TCS due to indirect taxes or discounts as tax is deducted on receipt of consideration and not the sale

Sanchit

Sanchit (Querist)
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27 April 2022 Sir,
So TDS u/s 194Q be deducted on Bill Value.
& For TCS we will check Amount received from customer in this F.Y. 2022-23 but what if customer has paid some amount in this F.Y. 2022-23 against previous year bills in which he has already deducted the TDS.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 April 2022 TDS to be deducted on bill value less GST.
TCS not applicable once TDS is deducted.

CA Puja Sharma

CA Puja Sharma (Expert)
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27 April 2022 Yes, exclude the proceeds received from the customer against which TDS was deducted in the previous FY.

Sanchit

Sanchit (Querist)
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27 April 2022 Thanks for solving my query sir, but sir please clarify 2 situations as well,
Provisions of Sec 194Q & Section 206C (1H) are applicable to us in this Financial Year
1) We have purchase some goods in previous F.Y. in which seller has already charged TCS now in this F.Y. we have purchase some goods having Taxable Value around 48 Lakhs and Total Bill Value is 56 Lakhs (approx.). For calculation of TDS u/s 194Q, on what amount we will deduct the TDS.
2) We are paying for Some Purchase Bills of Previous Financial Year against which TCS already charged, whether at the time of Paying such bills we will have to deduct the TDS as well.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 April 2022 1 TDS applicable on 48 lacs.
2 No need of TDS in such a case.

Sanchit

Sanchit (Querist)
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27 April 2022 Sir, Total Bills value from such Party is Rs. 56 Lakhs out of which Taxable Value (withous GST Value) is Rs. 48 Lakhs., Whether we should not give the basic exemption limit of Rs. 50 Lakhs.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 April 2022 Give basic exemption of 50 lacs. Sorry for the earlier reply.

Sanchit

Sanchit (Querist)
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28 April 2022 Sir, Please Calculate the TDS Amount as my query is still unresolved.
Bills raised by the vendor to usin this Financial year is Rs. 56 lakhs in which Taxable Value( Value of bill before GST) is Rs 48 Lakhs .

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 April 2022 For the 6 lacs deduct TDS exclusive of GST.

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