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tds on rcm gst

Archit Melana (CA final) (76 Points)

16 January 2018

will tds also deducted on rcm gst component?

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4 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 16 January 2018

No....
Only Bill value (Basic Value)

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Archit Melana (CA final) (76 Points)
Replied 16 January 2018

new limit of cash disallowance above rs 10000 Will be applicable from 1/04/2018 or 01/04/2017???

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 16 January 2018

Reduction in Limit under section 40A(3A)

In order to dis incentivise cash transactions, it is proposed to amend the provision of section 40A of the Act to provide the following:

(i) To reduce the existing threshold of cash payment to a person from twenty thousand rupees to ten thousand rupees in a single day; i.e any payment in cash above ten thousand rupees to a person in a day, shall not be allowed as deduction in computation of Income from "Profits and gains of business or profession"

(ii) Deeming a payment as profits and gains of business of profession if the expenditure is incurred in a particular year but the cash payment is made in any subsequent year of a sum exceeding ten thousand rupees to a person in a single day; and

(iii) Further expand the specified mode of payment under respective sub-section of section 40A from an account payee cheque drawn on a bank or account payee bank draft to by an account payee cheque drawn on a bank or account payee bank draft or use of electronic clearing system through a bank account.

These amendments will take effect from 1 April, 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent years.