03 December 2018
Sir/Madam Pune ZP had deducted 2% for GST from RA bill, (not TDS) just like WCT, I cant understand why it is deducted and how to charge GST to government department on RA bills for Works contract services
03 December 2018
Its TDS deducted . TDS has been implemented from 1st October, 2018 as per the notification no. 50/2018 (Central) issued by the Govt of India . As per this section, Govt Authorities are liable to deduct tax at source..They have to deduct tax at the rate of 2 percent( 1 percent CGST and 1 percent SGST in the case of intrastate supplies ; 2 percent IGST in the case of interstate supplies) from the payment made or the amount credited to the supplier ,where contract value , exceeds two lakh and fifty thousand rupees (excluding CGST, SGST, IGST, UTGST and Cess). this 2 % deduction will be made from each payment ( Thats the reason authorities deducted 2 % tax from RA Bill also
04 December 2018
Madam, as I have mentioned its not TDS, TDS has been deducted separately on RA bill and in addition too that extra 2% is deducted specifically mentioned as GST
04 December 2018
Deduction of 2% GST is not understood . Government Authorities supposed to deduct 2 % TDS ( as per Sec 197 C of Income Tax Act and also deduct 2% ( 1 % CGST + 1 % SGST TDS ) on payments of contractors bill wherever total contract value exceeds Rs 250000/-
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