We need the deduct the taxable value service to compute the TDS On purchase.
This query is : Resolved
12 April 2023
Dear Experts,
01. We deduct the TDS on purchase under section 194Q.
02.We avail the some type of services from the same supplier.
03.The query is:
a. Whether we need the deduct the taxable value service to compute the TDS On purchase.
Pl clarify
01. We deduct the TDS on purchase under section 194Q.
02.We avail the some type of services from the same supplier.
03.The query is:
a. Whether we need the deduct the taxable value service to compute the TDS On purchase.
Pl clarify
CA Sanat Pyne
(Expert)
12 April 2023
Based on the information provided, it appears that you are deducting TDS under section 194Q on your purchases from a particular supplier. Additionally, you are also availing some type of services from the same supplier.
In order to determine whether you need to deduct TDS on the taxable value of the services received from the same supplier, you will need to consider the provisions of the relevant sections of the Income Tax Act, 1961.
Under section 194Q, TDS is required to be deducted on the purchase of goods where the total purchase value from a particular supplier exceeds Rs. 50 lakh in a financial year. The TDS rate is 0.1% of the purchase value exceeding Rs. 50 lakh.
On the other hand, TDS on services is covered under section 194J/194C of the Income Tax Act. As per this section, TDS is required to be deducted on the payment made for professional or technical services, royalty, and non-compete fees.
Therefore, based on the above provisions, it appears that TDS on services received from the same supplier will not be covered under section 194Q. Instead, you will need to deduct TDS on the taxable value of the services received under section 194J/194C, if applicable.
It is important to note that the applicability of TDS provisions can depend on various factors such as the nature of transaction, the threshold limits, and the residency status of the recipient, among others.
In order to determine whether you need to deduct TDS on the taxable value of the services received from the same supplier, you will need to consider the provisions of the relevant sections of the Income Tax Act, 1961.
Under section 194Q, TDS is required to be deducted on the purchase of goods where the total purchase value from a particular supplier exceeds Rs. 50 lakh in a financial year. The TDS rate is 0.1% of the purchase value exceeding Rs. 50 lakh.
On the other hand, TDS on services is covered under section 194J/194C of the Income Tax Act. As per this section, TDS is required to be deducted on the payment made for professional or technical services, royalty, and non-compete fees.
Therefore, based on the above provisions, it appears that TDS on services received from the same supplier will not be covered under section 194Q. Instead, you will need to deduct TDS on the taxable value of the services received under section 194J/194C, if applicable.
It is important to note that the applicability of TDS provisions can depend on various factors such as the nature of transaction, the threshold limits, and the residency status of the recipient, among others.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- GST input credit on commercial property
- GSTR-9C filing
- GST ITC as per notification 12/2023- central tax
- Urd purchase entry in tally prime
- Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
- Gift to nri relatives residing in usa
- Form 144 TDS Return Validation Error – Mandatory Fields
- TDS- 2026-27 Q1 Correction
- How do you manage client document collection and follow-ups in your CA/CS practice?
- Ito add credit side of bank
- Employee secondment
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
