we are manufacturer of heavy commercial vehicle. Our many parts has been processed by job worker. In erstwhile excise rule, we had sent the parts under rule 4(5)(b) of combat credit rule-2004.there was exemption on job work process, and no service tax liability on job work goods. as per income tax act, company hD deducted TDS as and paying to government. in gst regime, jobworker pay gst on their bill. our query is that, (1)we will require to deduct TDS or not. ? (2) during deduction of TDS we will deduct on basic value or including gst value? (3) if any notification is applicable please let me share?
As per the Central GST (CGST) Act, the notified entities are required to collect TDS at 1 per cent on payments to suppliers of services in excess of Rs 2.5 lakh. This provision has been kept in abeyance.
TDS is to be deducted at the rate of 1 percent on payments made to the supplier of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds two lakh fifty thousand rupees
in ur reply mentioned that " TDS is deducted on paint made to supplier of taxable goods and/or sercices". our further query is it will deducted on services only or goods also. please clarify
"the deductor", to deduct tax at the rate of one per cent. from the payment made or credited to the supplier of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees
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