Master in Accounts & high court Advocate
9610 Points
Posted on 05 September 2024
TDS under Section 194Q applies to certain business transactions, including purchases of goods (except for petroleum products) exceeding ₹1.14 crore in a financial year. Since diesel is a petroleum product, TDS under Section 194Q is not applicable on its purchase as an expense for FY 23-24, even if the amount exceeds ₹1.14 crore. However, there might be other TDS provisions or tax implications to consider, such as: 1. TDS under other sections (e.g., Section 194C for transportation contracts) 2. GST implications (if applicable) 3. Income tax on the expense itself To ensure compliance and optimize tax efficiency,