NO TDS on GST Components
This articles deals with CBDT clarification on “No TDS on GST component on services rendered”.
CBDT has clarified vide Circular No. 23/2017 dated 19th July, 2017 that if GST on Services component has been indicated separately in the invoice, then no tax would be deducted at source under Chapter XVII-B of the Income Tax Act, 1961 on such GST component.
So, to enable TDS to be computed on the value of invoice excluding GST, it is important on the part of the supplier to mention the GST component separately. While mentioning GST amount separately is a standard practise.
Example would illustrate the point in case
| Professional Fee | 10,000 | |
| Add: GST | ||
| CGST@9% | 900 | |
| SGST@9% | 900 | 1,800 |
| Total Invoice Value | 11,800 | |
| TDS u/s 194J at 10% on Rs 10,000/- | 1,000 |
This circulars helps professional & entrepreneur to avoid blockage of funds.
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