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On what amount deduction under 194Q advance payment is made?

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Karan Agarwal

8 Points Posted on 17 August 2022

if advance payment is made then we have to deduct tds on total advance payment (incl of gst)
if invoice raised then payment is made then we have to deduct tds on taxable value?

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Quick Summary

This discussion clarifies the rules for deducting Tax Deducted at Source (TDS) under Section 194Q when making advance payments. It confirms that TDS should be deducted on the total advance payment amount, including GST, if paid before an invoice is raised. Once an invoice is issued, TDS is applicable only on the taxable value, excluding GST.