Tds on transaction value exceeding Rs. 50 Lakhs

We purchased Goods worth 51 Lakhs from Party  Who  included  TCS in his  Invoice. 

Now  On Due date of  Payment Is it compulsory to  Deduct TDS  from Payment .

Please explain TDS  Deduction procedure on such  transactions 

 

 

Replies (11)
Quick Summary
This discussion clarifies the rules around Tax Deducted at Source (TDS) for transactions exceeding Rs. 50 Lakhs. It explains that if the supplier has already included Tax Collected at Source (TCS) in their invoice, you may not be liable to deduct TDS under Section 194Q of the Income Tax Act. The guidelines, referencing CBDT Circular 13 of 2021, suggest that TDS is generally applicable on payments for taxable goods and services exceeding Rs. 2,50,000 under a single contract, provided your business turnover exceeds Rs. 10 Crore in the previous year.

TDS is to be deducted at the rate of 2 % on payments made to the supplier of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds Rs. 2,50,000.

I think it's Income tax query . TDS Under section 194 Q of the Income tax act , Mr Hanif please confirm .
194q should be deducted

Yes It is Income tax TDS  querry  Is Income tax deductible on such  Payments .  The  Transaction  is  Sale of Goods The  Supplier has Collected  GST and  TCS  in its  Invoice 

 

1) Refer  Circular 13  of  2021   dated  30-6-2021   of  CBDT  , Guidelines under section 194Q  of the Income Tax act  . 

2) Also  refer section 194Q of the income Tax act  1961 . 

Thank You  All, 

Thanks, Mr. Prasad 

Your welcome
Welcome
Thank you

In your case, no TDS liability upon you under sec 194Q, as supplier charged TCS in Bill. Other wise if your turnover in PY more than 10.00 Crore than TDS @ .10 to be deducted on the purchase more than 50.00 lac from 01.04.21

Yes,  This is the right answer for my  query, 

Thank you  Mr. SATISH KUMAR, 

Thank You,  Very Much 

 

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Topics :

Loading
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details
Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details