Tds under gst

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Priyanka Roy (Querist)

19 December 2018 We received a invoice for sales promotion which details under below:- value 76000 & gst 13680 total amount is 89680 now because its a sales promotion bill can we have to deduct TDS BEFORE PAYMENT. & how we calculate this is because its a gst bill

CA Anita Bhadra

CA Anita Bhadra (Expert)

19 December 2018 As per section 51 read with notification no 50/2018, dated 13/09/2018, certain category of person would have to deduct tax . These are Govt Agencies, Local Authorities , PSU etc
Do you fall under such specific category , then only you need to deduct TDS under GST .
Further , TDS to be deducted only if total contract value exceeds Rs 2.5 Lakhs .
Simply that it is sales promotion bill , you need not to deduct TDS

CA Kamlesh Kukreja

CA Kamlesh Kukreja (Expert)

19 December 2018 Completely Agreed with CA Anita. But if TDS Provisions are applicable to you as per Income Tax Act Then TDS on Contractor @ 2% needs to Be deducted under Income Tax Act since Value of Single Bill Exceeds 30K

RAJA P M

RAJA P M (Expert)

19 December 2018 Yes... I agreed to CA Anita Bhadra... As per GST Tds provisions applicable to Govt entity and it's related Parties... 1. A department or establishment of the Central Government or State Government; or-Sec-51(1)(a) 2. Local authority; or- Sec-51(1)(b) 3. Governmental agencies;- Sec-51(1)(c) 4. Such persons or category of persons as may be notified by the Government- Sec-51(1)(d)- Notification No -50/2018 a. An authority or a board or any other body, ‑ i. set up by an Act of Parliament or a State Legislature; or ii. established by any Government, with fifty-one per cent. or more participation by way of equity or control, to carry out any function; b. Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860); c. Public sector undertakings & As per Income Tax & Accounting policy "SALES PROMOTION" is not a specified activity. No more definitions as Services or Contracts or any others based on tds provisions. So, Without any clarity of expenditure tds also not applicable under income tax view.

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