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Should I deduct TDS for import of Services? Or just pay IGST?

Bibin Mathew   23 January 2020

Bibin Mathew

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I am creating a website for my business. To design this website I'm hiring the services of a company based in USA. From what I understand, import of services are treated as inter-state supplies. Which is why I must pay IGST on behalf of the non-resident supplier (in this case the company from USA) to the Indian government under the 'Reverse Charge Mechanism' (RCM). This part is clear for me.

My doubt is about TDS. Apart from paying IGST, should I deduct TDS? Wouldn't this become double taxation for a single transaction?

Or in other words: Am I liable to deduct TDS for import of services under GST regime, where I am already paying IGST under RCM?

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Anup Agarwal   23 January 2020

Anup Agarwal

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No. You are not liable to deduct TDS even in GST or Income tax.
as section 51 of CGST Act (i.e. TDS ) Is applicable if supply is made to govt. department or govt. or govt. agencies.

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