Article explains Provisions of TDS under GST, By whom TDS under GST are to be deducted, Date from which Deduction of TDS under GST to be made, Rate of TDS under GST, Threshold limit for deduction of TDS under GST,


Feature needed for below:
Threshold limit for deduction of TDS under GST :
The TDS under GST has to be deducted if the value of supply under a contract, exceed Rs. 2,50,000. Value for the purpose of deduction of TDS shall be considered, excluding the CGST, SGST, UTGST, IGST & Cess under GST.

Therefore, the TDS is deductible only when a single purchase order / contract, exceeds Rs. 2,50,000/, meaning thereby that no TDS would be attracted if the value under the contract for supply of goods or services or both is up to Rs. 2,50,000. The above provision is explained with an example as under .


Cases TDS under GST TDS Income Tax
Mr. A is awarded a contract say PO (No 1) for supply of goods or services for Rs. 2 Lacs and another contract say PO (No. 2) for Rs. 3 Lakh For PO (No.1), no TDS under GST is required to be deducted as the value of the contract is less than Rs. 2.5 Lakh.
However in respect of PO (No.2), TDS would be deducted on the payment of Rs. 3 lakhs, as the value of the contract exceeds Rs. 2.5 Lakh.

In respect of PO (No.2) even if a part payment is made say for Rs. 1 lakh, even then TDS would be deducted.

TDS under Income Tax is governed by various sections like Contract (194C), Professional (194J), Rent (194I) etc.
So if the payment made to supplier exceeds the threshold limit specified in the concerned section in that financial year, then TDS provisions would be attracted
Category: Tax
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