01 June 2022
In Para 4.3.2 of circular no. 13 of 202 1 dated 30.06.202 1, it has been provided that in case the GST component has been indicated separately in the invoice and tax is deducted at the time of credit of the amount in the account of the seller, then the tax is to be deducted under section 194Q of the Act on the amount credited without including such GST.
It has been further provided that in case the tax is deducted on a payment basis as the payment is earlier than the credit, the tax is to be deducted on the whole amount as it is not possible to identify that payment with the GST component of the amount to be invoiced in future.
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