Avinash Jeevan Dsouza (Assistant In Charge Accountant) (3292 Points)
26 April 2018We want to whether below transaction is need to be deduct the TDS.
We have received service bill of Rs 26000+4680GST 18%) =30680. Do we need to deduct the TDS as the payment will fall under more than 30K single payment. Our confusion is while deducting the TDS we need not to considered GST amount as it was on the service charges (Kindly quote the Section for GST on service is not considered while deducting the TDS).
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 26 April 2018
Avinash Jeevan Dsouza
(Assistant In Charge Accountant)
(3292 Points)
Replied 26 April 2018
Ok Thank you. Can you please tell me under which notification number or section we need to exclude GST component?
Ajay
(CA Job)
(512 Points)
Replied 26 April 2018
Dear Avinash
As per CBDT Circular No. 23/2017 dated 19th July, 2017, while deducting TDS under Chapter XVII-B of the Income Tax Act, 1961, you can exclude the GST portion provided the condiitons mentioned therein are staisfied, that is, terms of contract/agreement indicates GST payable separately. This Circular modifies the earlier CBDT Circular No. 01/2014 dated 13.01.2014.
Refer: https://www.incometaxindia.gov.in/communications/circular/circular_23_2017.pdf
Regards
Ajay
CAclubindia
