My client had registered for gst in January 2021. He had issued an invoice for services to a PSU in februry 2021 for rs 15 lacs plus gst and the 2nd invoice for rs 7.5 lacs plus gst in April 2021. The PSU had made a provision entry in their books for rs 7.5 lacs in March 2021 and accordingly deducted TDS @ 7.5% on the provision made.
Even though the Rules in GST permit the same, Form 26AS shall not tally with his Gst Return .Will that create an issue later on?
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Provision of expense
Replies (9)
You must have Tan number of IT Department to deduct. TDS , after TDS deducted It should deposit in GOVT Account , and file TDS return in order to reflect. in 26AS .
They have a TAN and shall efile their Tds return
Agree with prasad
Have they also deducted TDS on the first invoice of 15 lakhs ?
Yes they have deducted tds @ 7.5% on the first payment of rs 15 lacs
You can choose to c/f the TDS from FY 2020-21 to FY 2021-22 in your IT return. in that way, your mismatch in GST and TDS can be nullified without any query anywhere.
Mr. Raj Doshi Thank you very much
Agree with raj ji.
Thank you for your responses. The client would prefer to show full income in fy 2020-21 which is rs 22,50,000/-Thus the date on the invoice is revised to 31st march 2021 and in the gst return for the month of April 2021 the invoice for march 31st amounting to rs 750000/- shall be inputted. This will ensure that credit for tds will be taken. Interest will be payable on the delayed gst payment.
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