Supply of ATM & Service in Same Invoice Mentioned as per Client Request. I have following Doubts 1. What is the type of supply (i,e. Whether supply is supply of Goods or Supply of Service) 2. Under TDS Category - In ATM, Gst TDS and Income Tax TDS is applicable for us and Service only Income tax TDS applicable if we are separately Supplied such goods & service. But In this case what will be the Tds Provision ?
11 July 2024
In the scenario where you are supplying an ATM along with services in the same invoice, let's address your queries:
1. **Type of Supply:** - The supply of ATM (Automated Teller Machine) can typically be classified as a supply of goods under GST. According to GST law, ATM machines are treated as goods because they are tangible assets that can be bought, sold, or leased.
2. **TDS (Tax Deducted at Source) Provisions:** - For GST and Income Tax TDS implications, the treatment depends on how the transaction is structured: - **Supply of Goods (ATM):** - If the supply of the ATM is considered separately from the service (such as installation or maintenance), GST TDS would apply under Section 51 of the CGST Act, 2017. - However, if the invoice is for both the supply of the ATM and the associated services together, and it is not feasible to separate the goods and services component, then GST TDS may not apply as the supply is treated as a composite supply (goods and services bundled together). - **Supply of Services (Installation, Maintenance, etc.):** - Income Tax TDS may apply to the payment for services if the services are separately identifiable and distinct from the supply of goods (ATM). Income Tax TDS is applicable under Section 194C or other relevant sections of the Income Tax Act, 1961, depending on the nature of the services and payment terms.
**Key Considerations:**
- **Composite Supply:** If the supply of ATM and associated services (like installation, maintenance) are naturally bundled and provided together in the same invoice, GST TDS may not apply because it’s treated as a composite supply of goods and services.
- **Separate Supply:** If the supply of ATM and services can be separately identified and invoiced, then GST TDS (under Section 51) would apply to the supply of goods (ATM), and Income Tax TDS would apply to the services (under relevant sections of the Income Tax Act).
**Conclusion:**
To determine the exact TDS provisions applicable in your case, it's crucial to consider how the transaction is structured and whether the supply of ATM and services are treated as a composite supply or separate supplies. This assessment will guide you in complying with GST TDS and Income Tax TDS requirements correctly. If there's uncertainty, consulting with a tax advisor or chartered accountant would be beneficial to ensure compliance with applicable laws and regulations.
CAclubindia
