Tds under gst

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PRANAY JAIN (Querist)
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12 April 2017 Rules for deducting TDS and limits for the same are changed or not under GST like for professional fees, training invoices or any other services. Also when Goods & Services are treated alike in GST isn't concept of TDS ambiguous and contradictory.

Guest

Guest (Expert)

12 April 2017 The section 51 of the GST Act states that liability to deduct the tax at source arises when the payment is made to the supplier or credited to supplier on account of supply of taxable goods or services.The tax deducted at source shall be at the rate of 1%.

PRANAY JAIN

PRANAY JAIN (Querist)
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12 April 2017 Do u mean to say that now TDS is applicable on both Goods and Service ?

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Guest

Guest (Expert)

12 April 2017 Yes.The section specifically states so.

Sunil

Sunil (Expert)
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12 April 2017 It is TDS on GST and not on Income Tax. TDS for Income Tax is a separate issue not connected with GST.

PRANAY JAIN

PRANAY JAIN (Querist)
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12 April 2017 Yes i am asking for Income Tax only. Please reply accordingly.

Sunil

Sunil (Expert)
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12 April 2017 Income Tax is a separate Act altogether and there the TDS will be at applicable rates under various sub sections of section 194 at Amount of Invoice including the GST. There is nothing in income tax act indicating the TDS has been subsumed in GST.

Sunil

Sunil (Expert)
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12 April 2017 Please deduct TDS correctly on the Professional Fees etc. Your Payee will get tax credit and refund if excess TDS done. Things are quite streamlined if you deposit TDS on time and file the TDS return correctly.

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PRANAY JAIN

PRANAY JAIN (Querist)
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12 April 2017 Right Sir, but one of the objective of GST was to remove difference between Goods and Service, but as general rule in Service Tax, on all bills more than 30K, and now TDS was their whatever the amount is for Goods; but now their is no difference between Service & Goods in GST so how would these limit apply.