We are into Works Contract . So our major expense is Labour charges. Previously we were deducting their TDS if crosses the limit. From Now onwards do we have to pay GST on the same? Please advise.
We are into Works Contract . So our major expense is Labour charges. Previously we were deducting their TDS if crosses the limit. From Now onwards do we have to pay GST on the same? Please advise.
Yes, GST would be required to be paid @ 18 ........ forward charge if contractor is registered or under RCM if he is unregistered.
TDS under section 194C of IT act, would be liable to be deducted as and when applicable......
Thanks for the information but plese let me know is there limit of 20 lakhs? i.e. if we are paying more than 20lakhs to a single contractor then only we have to pay GST?
Limit of Rs.20 lacs is for the supplier of service. If his aggregate turnover of goods & services all over India under same PAN crosses this limit, he has to get registered under GST. Pl refer brochure on this:
https://www.cbec.gov.in/resources//htdocs-cbec/gst/regn-GST-onlineversion-07june2017.pdf
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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