Tds under gst

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Priyanka Roy (Querist)
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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)
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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)
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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)
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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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