Validity of transaction

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62 Points Posted on 26 April 2021
basic amt-80
TDS @ 20%added in invoice-20
Total invoice value-100
Gst @ 18% on 80-14.4

Is the levy of gst valid?

shouldn't gst be charged on 100?
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On 26 April 2021 at 17:09 Report
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Quick Summary
This discussion clarifies the validity of levying GST on the basic amount of an invoice, even when TDS is applied. It confirms that GST is indeed applicable on the basic amount. The conversation also addresses the complexities of transactions involving NRIs, explaining that tax should be deducted on the grossed-up value, with potential additions for surcharge and SHEC.

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CMA
13117 Points Posted on 26 April 2021
Right, TDS to be applied on total invoice value here
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On 26 April 2021 at 18:01
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Chartered Accountant
24588 Points Posted on 26 April 2021
Yes, GST is applicable on basic amount and TDS also, you're right
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On 26 April 2021 at 19:59
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62 Points Posted on 26 April 2021
Please note that recipient is NRI(I.e pan not available), then also answer remains same?
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On 26 April 2021 at 20:27
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CMA
13117 Points Posted on 26 April 2021
In case the payment is made to an NRI, tax to be deducted on the grossed up value. Also surcharge (if applicable) + SHEC @ 4% to be added to the basic rate of tax.
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On 26 April 2021 at 20:36

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