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TDS in tax invoice bill

13 October 2017

my client has receive a service bill cum quotation from dealer as labour charges. but he shows TDS cutting in invoice bill. what is the effect of GST in this transaction? how would I show in GST accounting & also in GST return. please guide me in detail

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5 Replies

Nilesh Dwivedi (32 Points)
Replied 13 October 2017

GST should be Charged on Taxable Value.

TDS - Will only be deducted on Taxable Value and not on GST part.

Eg: Service Charge. = 100
GST will be on 100. = say 10
Total bill value = 110
TDS Value(1% on 100) = 1
Net Payment = 110-1=> 109

While passing the entry and making the payment you will be deducting TDS say 1% on Taxable Value of Rs. 100

Sorry did I answered your question.?

What do you mean by TDS cutting in invoice itself..?

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ovkushte90@gmail.com (88 Points)
Replied 13 October 2017

Bill detail is. taxable amt is 100
Cgst. 10.
Sgst. 10
gross amt. 120
Less _. TDS. 1.20
Total AMT. 118.20.

my question is this TDS where should I take? In income tax or In GST?

ovkushte90@gmail.com (88 Points)
Replied 13 October 2017

what entries are pass?

Nilesh Dwivedi (32 Points)
Replied 13 October 2017

Please Check the Invoice once as TDS shouldn't have been shown on Invoice.

and TDS should have been charged on Taxable amount I.e.on 100 but as per your example it is charged on Gross.

Entry:

Respective Service A/c ....Dr
CGST Credit on Services A/c .. Dr
SGST Credit on Services A/c... Dr

To Party A/c

Party A/c .... Dr
To TDS u/s 194C or J A/c
To Bank A/c