Is TDS deducted including GST?

For the purpose of deduction of TDS, the value of supply is to be taken as the amount excluding the tax indicated on the invoice. This means TDS shall not be deducted on the CGST, SGST or IGST component of invoice.

Is TCS applicable on service bill?

This new provision of TCS is applicable on a receipt basis and not a sale. So, the seller of goods is required to collect TCS on advances received and later adjusted against the invoice. Thus, it is advisable to collect TCS on a receipt basis rather than at the time of issue of the invoice.

Do I have to pay GST and income tax both?

GST Registration is required if the turnover is more than 40 lakh rupees per year. Income tax should be paid if the annual income of a person is more than 2.5 lakh rupees.

Who is not liable to deduct TDS?

Any person making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such specified payment. But no TDS has to deducted if the person making the payment is an individual or HUF whose books are not required to be audited.

What is difference between TDS and GST?

GST is a type of indirect tax to be paid to deductor whereas TDS is a type of direct tax to be levied upon deductee. GST has to be paid whether the deductee made a profit or loss whereas TDS is only to be paid when there is a sustainable profit in the business transaction.

Is TDS deducted on telephone bill?

No Tax is recovered from source for post paid telephone bills and mobile bills. No TDS for prepaid calls also. In such cases the recipient of service is liable to deduct tax and remit the same to the exchequer of the Government.

How much is TDS on rent?

The rates of TDS can be summed up as follows: Rent for plant/ equipment/ machinery- 2\% TDS on the rent amount paid. Rent for land/ building/ furniture/ fittings- 10\% TDS on the rent amount paid. Individual/ HUF not liable to tax audit – 5\% TDS on the rent paid in cases where more than `50,000 is paid per month as rent.

What is new rule of TCS?

WHAT IS THE NEW TDS RULE? The CBDT said the rate of TDS or TCS will be higher for people who have not filed income tax returns for two years. TDS or TCS will be charged at double the rate specified in the relevant provision of the Income Tax Act or 5 per cent.

Does service provider pay GST?

Like any other category of business, all the service providers should obtain GST registration, if the entity’s aggregated annual turnover exceeds Rs. 20 lakh per annum in most states and Rs.

Do I need to charge GST for my services?

Despite most goods/services being subject to GST/HST, you may not be required to charge/collect GST/HST depending on your sales revenue. For most small business owners, you are generally not required to charge/collect GST/HST if you are considered a “small supplier”.

What are the payments to which TDs provisions apply?

In respect of payments to which the TDS provisions apply, the payer has to deduct tax at source on the payments made by him and he has to deposit the tax deducted by him to the credit of the Government. Q.2 What are the payments covered under the TDS mechanism and the rates for deduction of tax at source?

Is TDS deducted from gross or net?

TDS stands for tax deducted at source. The payer of income deducts the tax from the gross payment due and pays the net amount (i.e. net of tax). Is TDS deducted at same rate from all types income which are subject to TDS? No, TDS is not deducted at the same rate from all incomes which are subject to TDS.

What is the meaning of TDs in GST?

TDS is part of total consideration charged by service provider. Such service tax paid would also be eligible as Cenvat credit where the imported services are used for providing taxable

What is TDs and why was it introduced?

It was introduced to collect tax at the source from where an individual’s income is generated. The government uses TDS as a tool to collect tax in order to minimise tax evasion by taxing the income (partially or wholly) at the time it is generated rather than at a later date.