Gst on invoice subject to tds

Michelle (Service) (297 Points)

10 July 2017

Gross Amount charged is Rs. 100000. TDS to be deducted at the rate of 10%. GST is applicable on said bill at 18%.

Will TDS be deducted on Rs. 100000 or Rs. 118000? What will be the TDS amount?

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CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 10 July 2017

Under which section your case falls?

saurabh (jaipur) (257 Points)
Replied 10 July 2017

TDS will be deduct on Rs100000/-
tax is not an part of income of receiver.
TDS will be charged on old basis.there are no change in the concept of TDS

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Michelle (Service) (297 Points)
Replied 10 July 2017

Rental Income 194 I

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 10 July 2017

Service tax paid by the tenant does not partake the nature of income of landlord. The

landlord only acts as a collecting agency for Government for collection of service tax.

Therefore tax deduction at source (TDS) under Sec. 194-I of the Income-tax Act would

be required to be made on the amount of rent paid/payable without including service tax.

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 10 July 2017

Service tax paid by the tenant does not partake the nature of income of landlord. The

landlord only acts as a collecting agency for Government for collection of service tax.

Therefore tax deduction at source (TDS) under Sec. 194-I of the Income-tax Act would

be required to be made on the amount of rent paid/payable without including service tax.

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