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GST TDS ON JOB WORK

kaushal (CMA) (38 Points)

17 November 2018

IS GST TDS 2% is applicable to JOB WORK ORDER value more than ₹ 2.5 lakh

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 17 November 2018

THR Job work from following related parties*** then they deduct TDS as per GST Act. Otherwise TDS not applicable.

***As per section 51 read with notification no 50/2018, dated 13/09/2018, following category of person would have to deduct tax at the rate of one per cent (effective rate would be 2 % i.e. 1 % as CGST and 1% as SGST) from the payment made or credited to the supplier of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees.

1. A department or establishment of the Central Government or State Government; or-Sec-51(1)(a)

2. Local authority; or- Sec-51(1)(b)

3. Governmental agencies;- Sec-51(1)(c)

4. Such persons or category of persons as may be notified by the Government- Sec-51(1)(d)- Notification No -50/2018

a. An authority or a board or any other body, ‑

i. set up by an Act of Parliament or a State Legislature; or

ii. established by any Government,

with fifty-one per cent. or more participation by way of equity or control, to carry out any function;

b. Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860);

c. Public sector undertakings.