No TDS on component of CGST, SGST and UTGST- thanks for timely Circular- more scope and clarity is desired
By: – DEVKUMAR KOTHARI
Income Tax
Dated:- 21-7-2017
References and links:
CIRCULAR No. 23/2017 dt. 19th July 2017 (appears applicable to all levies of GST)
Circular No. 1/2014 dated 13.01.2014 (Extended NO TDS on service tax on all services)
Circular No.4/2008 dated 28-04-2008 (No TDS on service tax on rent, S 194 J)
CIT (TDS) Jaipur v. Rajasthan Urban Infrastructure and 239/2011) 2013 (8) TMI 12 – RAJASTHAN HIGH COURT
General discussion about nature of GST and documentation aspects:
GST (CGST, SGST and UTGST)- diversion at source:
GST is collected by a registered supplier of goods or service provider, as a levy
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asthan Urban Infrastructure (supra.) , the earlier circular was modified to extend no TDS on service tax element in cases of other services on which tax is deductible u/s 194J.
As per contract or agreement:
There can be a written or verbal contract or agreement. There can be contract by way of conduct between parties and also by way of trade practices.
Generally GST or any levy, which is levied is to be paid by the customer / client, unless otherwise decided. This is for the reason that levy of tax is not stagnant, it may change from time to time. Therefore, tax is to be paid by customer / client, at the time when levy is attracted and at the applicable rate at that time.
GST Charged separately:
As per format of Tax Invoice a registere
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separately or rates are mentioned inclusive of GST.
b. In case receiver of services is required to pay tax under reverse charge method, then there should not be TDS on GST paid under reverse charge mechanism (RCM). The amount paid under RCM is neither paid nor credited to account of service provider or supplier.
c. GST on all supplies and services should be exempted from TDS and piecemeal approach should be avoided this is because provisions of GST and TDS and TCS are changing from time to time and there can be frequent changes due to implementation of GST is its initial stage.
A clarification on above issues would be helpful for taxpayers and tax authorities both.
Scholarly articles for knowledge sharing by authors, experts, profe
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