Non GST Invoice

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This discussion clarifies whether Tax Deducted at Source (TDS) can be deducted from an invoice that does not include Goods and Services Tax (GST). The consensus is that GST and TDS are separate obligations. Therefore, if TDS is legally required under income tax rules, it can and should be deducted, regardless of whether GST is charged on the invoice. There is no rule preventing TDS deduction solely because GST was not applied by the service provider.

Gurvinder Singh

Gurvinder Singh (Querist)
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16 April 2024 Hello,

Can a PARTY deduct TDS on an Invoice on which the company doesn't charge GST.

Thanks

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 April 2024 absolutely. What makes you believe that it should not deduct TDS if legally required to do so. GST and TDS have no linkage to each other.

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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17 April 2024 If you talking in reference of Income Tax TDS then as correctly said by Expert there is no connection with reference to TDS and GST

Gurvinder Singh

Gurvinder Singh (Querist)
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18 April 2024 Thanks,
But to clarify, if a travel agency raises tour package without GST, is there any rule which states that the party to whom services are sold can't deduct TDS on Invoice, unless and until GST is paid by them.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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18 April 2024 there is no such rule. your TDS liability is based on income-tax rules and is not linked to GST.

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