Will GST be applicable on 194R?
This query is : Resolved
15 September 2025
A company has deducted TDS on 194R, do we have to pay GST?
15 September 2025
If the benefit/perquisite is a “supply” under GST:
If the benefit/perquisite qualifies as a "supply" under Section 7 of the CGST Act, and it is given in the course or furtherance of business, then GST is applicable.
The supplier (i.e., the person giving the benefit) may have to pay GST on the value of the benefit.
If the benefit is a gift, free sample, or incentive, GST may apply based on the situation.
If it is not a supply:
If the benefit/perquisite is not a taxable supply (e.g., purely personal in nature or not in course of business), then GST will not apply, even though TDS under 194R is still required.
If the benefit/perquisite qualifies as a "supply" under Section 7 of the CGST Act, and it is given in the course or furtherance of business, then GST is applicable.
The supplier (i.e., the person giving the benefit) may have to pay GST on the value of the benefit.
If the benefit is a gift, free sample, or incentive, GST may apply based on the situation.
If it is not a supply:
If the benefit/perquisite is not a taxable supply (e.g., purely personal in nature or not in course of business), then GST will not apply, even though TDS under 194R is still required.
Message likes :
1 times
19 September 2025
Good Luck...
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
- Opting our of sec 44AD
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Regarding TDS Applicability For Director Remuneration
- Multiple trade mark
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- FORM 26A APPLICABILITY
- GST on rental income_Composition
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
