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Govt. receipts

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SANDEEP PRAJAPAT

Student CA IPC / IPCC

33 Points Posted on 20 August 2020

my client is govt contractor and he works in a pwd department. after work completion he received the amount and govt department deduct the 2% tds on it. But when i am filling 3b return which turnover i will assume for example.. gross receipts 500000. and pwd department deduct 2% tds on 500000 i.e. 10000. govt certify the amount of work 500000. my question is, i have to consider the taxable value 500000 or 500000/112*100 in gst return. becuse in govt department we have not raising bill with tax.

Replies (2)

Quick Summary

This discussion clarifies how a government contractor should report turnover in their GST 3B return when TDS is deducted. The consensus is to raise invoices on the taxable value of the work completed, regardless of the TDS deduction. The TDS amount itself does not affect the turnover declared on the GST return.

jacinthamary

accountant

888 Points Posted on 20 August 2020

You have to raise GST bill even if it is govt department. If you have issued GST bill you can avail TDS. But Govt dept will deduct 2% TDs for payments above 2.5 lakhs