Tds under gst

Dear Experts,

I an entity is formed under special Act of Parliament which is having 100% Share Capital in a Company registered under Companies Act, Whether the said Company will be liable to deduct TDS under GST.

If Company A is providing services as a Consultant and processes bills of contractors and Vendors as pure agent basis then how TDS under GST will be deducted.

Thanking you in anticipation

Replies (6)
https://youtu.be/OnRmaVQWtBg
As per Notification 50 CT :

a) an authority or a board or any other body, -
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by any Government,
with fifty-one per cent. or more participation by way of equity or control, to carry out any
function;

So your company cover under the TDS Liabilities.

NOW IN SECTION 51 CGST ACT : It say if the individual contract value exceeds 2.5 lac , the TDS attracts & to be deduct @ 2% from payment made to supplier.

Hence here the type of supply is not define for deducting TDS , only the value is fixed ie 2.5lac

so in my point of view TDS will dedected even in supply of pure agent services
Dear Kailash Sorry for above reply in regard to TDS applicability , Its only on TAXABLE SUPPLY only , So on exempted supply there will be No TDS leviable. : In Section 51 CGST Act specifically mentions for deduction of tax at source on taxable goods or services only.: Further regarding clarifications in this regards, document titled as ‘SOP on TDS’ released recently and hosted on CBIC website may be referred. It elaborates on all such issues. Hence In regard to your query if its Pure Services its being exempted u/s 12 /2018 , (s.no.3) No TDS should be deduct.
As per valuation rule the expenditure incurred as pure agent is not treated as supply so no GST applicable , Hence no TDS will attract
As per valuation rule the expenditure incurred as pure agent is not treated as supply so no GST applicable , Hence no TDS will attract

Sir, Thank you very much for your valued feedback.

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