Tds under gst on advance payments

Concept and Applicability of TDS and TCS provisions applicable w.e.f. October 1, 2018 https://www.caclubindia.com/articles/details.asp?mod_id=34512

Go through the article for your reference

1. As per section 51 CGST Act :

to deduct tax at the rate of one per cent. from the PAYMENT made or credited to the supplier [hereafter in this section referred to as "the deductee"] of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees:

its clearly given on payment made or credited , so on advance payment the Govt. will deduct the TDS

2. As per Notification 12/2017 Supply govt to govt is exempted so no TDS is applicable

3. TDS is applicable only when the supplies are made to Govt. & as per section 51 cgst act only Govt is liable to deduct TDS when the contract value exceeds 2.5lac

Pankaj Ji pl clarify " for utilities shifting the Local Body(Municipal Department),telangana is to pay  an advance amount of Rs.1.06cr to the Central Power Distribution a Public Sector under Govt of Telangana  in the invoices Power Distribution department added the GST @ 18% against the !2% on works Contract and submitted for advance payment, is the Municipal Department has to deduct GST_TDS 1% +1% as per latest notification of Govt of India pl clarify

 

YES TDS IS APPLICABLE , LOCAL AUTHORITY IS LIABLE TO DEDUCT @ 2% ON PAYMENT MADE TO CPD