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About TDS 194Q

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Mahendravarman

Accountant

42 Points Posted on 07 April 2022

Respected experts

which amount taken to TDs work out to 194Q?

Whether Invoice value or Taxable value

Suppose If yes taxable value, Do i make compute with taxable value including other changes like Freight charges, loading and unloading?

For example
Taxable value +If any loading charges or freight charges + GST components=Invoice value.

which amount taken?

kindly share to us.

Replies (7)

Quick Summary

This discussion clarifies the applicability of TDS under Section 194Q, specifically regarding which value to consider for deduction. Experts confirm that TDS should be calculated on the taxable value of goods, including ancillary charges like freight, but explicitly excluding GST. The threshold for TDS deduction is a purchase transaction exceeding Rs. 50 lakhs in the current year, provided the buyer's turnover exceeded Rs. 50 crore in the previous year.

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 07 April 2022

GST will not be considered.

Is GST charges on taxable value or on freight also ?

V SUBRAMANIAM

Tax consultant

375 Points Posted on 07 April 2022

194q relates only goods not servics.

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 07 April 2022

Taxable value of goods can include the other charges which are necessary to bring the goods to the receipient location.

So 194Q can be applied on taxable value of goods + other charges but you may exclude GST..

Vikram Suthar

32 Points Posted on 07 April 2022

TDS UNDER SECTION 194Q

PURCHASE TRANSACTION IN RS. EXCEEDS 50 LAKHS IN CURRENT YEAR.

AND BUYER TURNOVER IN LAST YEAR IS EXCEED 50 CRORE.

THEN TDS DEDUCTION AT THE RATE OF 0.1%

IF PAN NOT Provide SELLER THEN TDS AT THE RATE OF 5%