TDS DEDUCTED UNDER SECTION 194R WHERE TO SHOW IN ITR AND GST.

[vaibhav kumar]

TDS has been deducted under Section 194R and reflected in Form 26AS. Where should this amount be shown in the Income Tax Return (ITR)?

• Which income head (e.g., Business/Profession, Other Sources) should this amount be reported under?

• GST Liability on Amount for which TDS is Deducted under Section 194R?

[Ryan Vaz]

Applicable Law / Notifications / Circulars

Where to Show TDS u/s 194R in ITR?

Report the value of benefit/perquisite as Business Income (PGBP).

Show the TDS credit under “Schedule TDS – Details of Tax Deducted at Source (Other than Salary)”.

Correct Income Head

Profits & Gains from Business or Profession (PGBP) — because 194R applies only to benefits/perquisites arising from business/profession.

GST Impact

Usually NO GST payable by the recipient of benefit/perquisite because:

The recipient is not supplying anything to the giver in return (no consideration).

The act of receiving a benefit is not a supply under GST.

GST is payable by the provider of the benefit (if it is goods/services) depending on the nature of the benefit.

AI Summary

TDS on benefits/perquisites should be reported as business income; recipient ordinarily has no GST liability. TDS deducted on benefits or perquisites must be reported by the recipient as Profits & Gains from Business or Profession (PGBP) in the ITR, with tax credit shown under Schedule TDS corresponding to Form 26AS. GST is ordinarily not payable by the recipient because receipt of a benefit is not consideration for a supply; any GST liability is determined with reference to the provider of the benefit.