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GST AND TDS COMBINED

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Priyanka Daga

CA Final

48 Points Posted on 04 January 2024

IF A CA RAISES A COMBINED BILL FOR SERVICE AND REMIMBURSEMENT OF EXPENSES. SHOULD HE CHARGE GST ON THE WHOLE BILL AND ON WHICH AMOUNT SHOULD BE TDS DEDUCTED?

Replies (3)

Quick Summary

This discussion clarifies how to handle GST and TDS when a Chartered Accountant issues a combined bill for services and expense reimbursements. It explains that GST should typically be charged only on the service amount, provided the 'pure agent' conditions are met for expense reimbursements. Regarding TDS, the consensus is that it should be deducted on the entire bill amount, including reimbursements, as the CA themselves cannot deduct TDS under the CGST Act.

Suresh Kumar

Account

408 Points Posted on 04 January 2024

First of all, CA cannot deduct TDS under CGST Act.

Only specified Government entities can deduct TDS under Section 51 of CGST Act.

2. GST can be charged amount excluding the reimbursement of Expenses. Reimbursement of Expenses is only allowed in GST when condition of Pure Agent is satisfied as per Rule 33 of CGST Rule.