Whether TDS U/S 194Q Deductible on advance payment as on 31/03/2021 ?
This query is : Resolved
Quick Summary
30 May 2022
Dear Sir,
Whether TDS Under Section 194Q Deductible on advance Payment MADE IN FY 2020-2021 against which Bill Raised in FY 2021-2022 after 01/07/2021.
Please expert help in the above issue.
Whether TDS Under Section 194Q Deductible on advance Payment MADE IN FY 2020-2021 against which Bill Raised in FY 2021-2022 after 01/07/2021.
Please expert help in the above issue.
30 May 2022
Yes, TDS applicable on advance payment.
Message likes :
1 times
30 May 2022
sir if Bill is raised in April to June 2021 against such advances whether TDS is applicable on such advances?
30 May 2022
The Finance Act, 2021, has inserted Section 194Q with effect from 01-07-2021. Thus, provisions of this Section shall not apply on any payment made or credit made in the books of accounts before 01-07-2021. Consequently, it would apply to all purchases made on or after 01-07-2021.
In simple words, the tax should be deducted where the payment is made or amount is credited on or after 01-07-2021. Thus, where any of the trigger event (i.e., payment or credit) has occurred before the date of applicability of provision, no liability to deduct tax will arise.
However, while booking the actual invoice, if the threshold limit has crossed, and other conditions are satisfied, the buyer has to deduct the tax on the amount exceeding the threshold limit as on the date of booking the actual invoice.
In simple words, the tax should be deducted where the payment is made or amount is credited on or after 01-07-2021. Thus, where any of the trigger event (i.e., payment or credit) has occurred before the date of applicability of provision, no liability to deduct tax will arise.
However, while booking the actual invoice, if the threshold limit has crossed, and other conditions are satisfied, the buyer has to deduct the tax on the amount exceeding the threshold limit as on the date of booking the actual invoice.
30 May 2022
TDS not applicable in such a case bill raised before the provisions applicable.
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
- CAPITAL GAIN REDEVELOPED FLAT
- Multiple payment of self assessment tax for A Y 2025-2026
- REGARDING ITR FILING QUESTION
- Requirement under FEMA &RBI
- CLOSING STOCK QUERY
- PF wage ceiling
- Correction in TDS return New Traces Portal
- TDS refund Indemnity Bond
- Query regarding TDS on EPFO Higher Pension Arrears- under wrong section
- Query regarding Item 61/62/63 vs Item 64 in ITR-3
- WHERE I SHOW GST 0% INVOICE IN GSTR1 (EITHER TABLE 7 OR TABLE 8)
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
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
