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194q on purchase of diesel

MONALI PADHI (34 Points)

26 August 2021

Whether 194q will be applicable for purchase of Diesel from a Automobile shop whose dealer is Indian oil corporation?

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7 Replies

sabyasachi mukherjee (26057 Points)
Replied 26 August 2021

Nature of assesse?

Akash Munne (29 Points)
Replied 26 August 2021

5 petroleum products are excluded from the GST law therefore Diesel should not attract GST.

sabyasachi mukherjee (26057 Points)
Replied 26 August 2021

Deisel and petrol is excluded that everyone knows.
Nature of assesse is important.

Akash Munne (29 Points)
Replied 26 August 2021

Sorry I thought que is related to gst 😅

sabyasachi mukherjee (26057 Points)
Replied 26 August 2021

I purposely asked nature of assesse.
what is the quantum of purchase?

VANAJA RANI (TAX CONSULTANT AUDIT ASSISTANT) (92 Points)
Replied 26 August 2021

There are two points mainly to consider to deduct TDS

1.Buyer is defined to be person whose total sales or gross receipts or turnover from the business carried on by him exceed ten crore rupees during the financial year immediately preceding the financial year in which the purchase of good is carried out.

2.The sales or gross receipts or turnover from business carried on by him must exceed Rs 10 crore. His turnover or receipts from non-business activity is not to be counted for this purpose.

3.There is no exemption for any specific business.(some relaxations given to transactions carried through various stock exchanges)

4.Hence TDS U/S 194Q is applicable on purchase of TDS , if buyer engaged in the sale of same business & turnover exceeds 10cr, he is liable to deduct TDS U/S 194Q.

Thanks

vanajarani

vanajaranig95 @ gmail.com