Tds section threshold limit

Sir component do we consider to calculated tds threshold limit u/s 194C

Amount with gst
or
Only exp amount??
Replies (6)
Only Expense Amount to be taken
TDS is required to be deducted on payment amount before GST.

However threshold limit for Section 194C.
The payer has to deduct Tax at Source from the sum to be paid to the contractor or sub-contractor where; The total sum credited or paid during the financial year exceeds Rs. 1 lakh or Any single sum credited or paid exceeds Rs. 30, 000.

So for threshold purpose limit is based on full amount including GST

1. It is very amusing to observe that sec 194C is applicable if the payment made to the other person during the year exceeds Rs. 1 lakhs. For considering the threshold limit for the purpose of sec 194C, GST component is included. 
2. Going by the provision it clearly states that "sums credited or paid or likely to be credited or paid during the financial year exceeds one lakh rupees". So if the sum paid during the year to a party exceeds Rs. 1 lakh then TDS u/s 194C needs to be deducted. But at the time of deducting the amount of TDS GST component should be excluded. As explained by Mr. Pravin. 
Please correct me if the above solution has an alternative view. 

@ kapadia
what does the word credit means
It means when the bill is received after the due
date.
the expenses accrues on due date.
IF THE BILL IS NOT ACCOUNTED FOR.
THEN ITS LIABILITY HAS TO BE ACCOUNTED FOR THAT IS A SEPERATE ACCOUNT.
Sabyasachi may refer section itself.
@ Sandeep
the threshold limit of Rs. 1 lac is mentioned for the entire financial year.
For a single teansaction its Rs.30000.

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