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TDS UNDER 194Q INCASE OF on account payments

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anita

trainee

514 Points Posted on 26 October 2021

hello,

We pay our supplier on count and not bill wise in that case should we deduct TDS on the complete payment amount as segregating basic values every time will become cumbersome

Replies (3)

Quick Summary

This discussion clarifies TDS deduction under Section 194Q for 'on-account' payments to suppliers. The consensus is that TDS should be deducted on the full payment amount at the earliest of when the sum is credited to the seller's account or when payment is made, whichever occurs first. There's no need to segregate basic values, as the law applies to the total sum paid or credited.

CA Raj Doshi

Practising CA

8954 Points Posted on 27 October 2021

TDS should be deducted at the earlier of payment or invoice booking. So if youare having a credit period, then deduct at the time of bill booking. If it's advance , then at the time of payment

anil jain

Partner

1072 Points Posted on 27 October 2021

no need to segregate, tds is to be deducted on full payment.

see the language of the provision of the statute..

Any person, being a buyer who is responsible for paying any sum to any resident (hereafter in this section referred to as the seller) for purchase of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year, shall, at the time of credit of such sum to the account of the seller or at the time of payment thereof by any mode, whichever is earlier, deduct an amount equal to 0.1 per cent of such sum exceeding fifty lakh rupees as income-tax.