TCS on gst

TCS should be inclusive or exclusive of gst
Replies (2)

As per clarification issued by CBDT vide circular no. 23/2017 dated 19.07.2017

"In the light of the fact that even under the new GST regime, the rationale of excluding
the tax component from the purview of TDS remains valid, the Board hereby clarifies that
wherever in terms of the agreement or contract between the payer and the payee, the component
of 'GST on services' comprised in the amount payable to a resident is indicated separately, tax
shall be deducted at source under Chapter XV Il-B of the Act on the amount paid or payable
without including such 'GST on services' component. GST for these purposes shall include
Integrated Goods and Services Tax, Central Goods and Services Tax, State Goods and Services
Tax and Union Territory Goods and Services Tax."

The same is implied to TCS component for IT purpose;

but CBEC has specified the the GST is to be charged over TCS component.

 

not to include gst as per cbdt circular

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