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TDS -194Q -Payment for purchase of goods

Mariappan (Student CA final new) (105 Points)

07 June 2021

TDS on 194C not applicable for material value of contract. in that case for material value 194Q is applicable or not?

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23 Replies

AKN FINANCIALSERVICES (146 Points)
Replied 07 June 2021

Yes, if the conditions of 194Q met.

2 Like

Surekha Padala (47 Points)
Replied 07 June 2021

Yes, if the purchase value exceeds 50 lakhs and your turnover exceeds 10cr. in the previous year, then u need to deduct tds under 194Q

1 Like

veerendar singh (tax consultant) (3301 Points)
Replied 07 June 2021

Tds compliance is getting tough!!
dual deduction on a single contract.

Surekha Padala (47 Points)
Replied 07 June 2021

What do you mean by dual deduction sir? Can u tell us an example regarding

veerendar singh (tax consultant) (3301 Points)
Replied 07 June 2021

I meant that this person must deduct tds under two sections, under 194c and 194q.
this case itself is a good example.

1 Like

Surekha Padala (47 Points)
Replied 07 June 2021

Sir, but there is an exception regarding that in 194q..na..if tds is required to be deducted under any other section then there is no need to deduct tds under 194q.

1 Like

Ankit Neema (2742 Points)
Replied 07 June 2021

Yes surekha Ji you are right, that there will be no double deduction on a Same Exp.

3 Like

veerendar singh (tax consultant) (3301 Points)
Replied 07 June 2021

But here there is two components to a single contract. if we look at the components separately then dual deduction may apply

2 Like

Ankit Neema (2742 Points)
Replied 07 June 2021

No Double deduction, as 194Q is on a purchase of goods.

3 Like

veerendar singh (tax consultant) (3301 Points)
Replied 07 June 2021

Ankit you are not getting what i am saying.
in a single contract/transaction two sections are into play 194c and 194q. nevertheless two different amounts are being subjected to tds.

i have only said dual deduction and not double deduction.
i agree that there is no double deduction.
i am only saying there is dual deduction.

Ankit Neema (2742 Points)
Replied 07 June 2021

Please explain with example.

1 Like

veerendar singh (tax consultant) (3301 Points)
Replied 07 June 2021

This case itself is a good example

Ankit Neema (2742 Points)
Replied 08 June 2021

I am asking you to give the practical example with values

1 Like

AKN FINANCIALSERVICES (146 Points)
Replied 08 June 2021

Ankit You are write there is no double deduction, if there is bill of material that also has a freight charges, then 194Q is for material and 194C is for freight Charges.
No Double deduction.

1 Like