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TDS on Expenses including GST

Nageshwara Reddy (Articles) (52 Points)

26 March 2019

we have charged one invoice including GST to Expenses, shall we need to deduct TDS for GST portion also ???

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4 Replies

CA Charmie Jhaveri (Associate) (163 Points)
Replied 26 March 2019

If you account the bill showing expense and GST in different respective ledgers, you need not deduct TDS on the GST portion.

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Nageshwara Reddy (Articles) (52 Points)
Replied 26 March 2019

in case we account full value to one ledger only

CA Charmie Jhaveri (Associate) (163 Points)
Replied 26 March 2019

In that case it means you are not claiming ITC and claiming full amount as expense. Hence you will have to deduct TDS on the full amount.

SRIHARI BALAJI (Finance executive) (26 Points)
Replied 28 March 2019

As per Income tax Act circular on applicability of TDS on services including GST, it says TDS need not be deducted on GST portion. It does not talk about accounting to expense or capitalising or availing ITC. This is what I remember. As per GST TDS provisions section 51, talks about deducting GST TDS on the value of invoice excluding GST for deducting GST TDS. It does not talk about accounting or availing GST ITC. Regards