Rate & Value of supply for deduction of TDS

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Supplier & Place of supply are in the different States IGST 2% Valuation of supply for deduction of TDS and applicable rates with illustrations: * For the purpose of deduction of TDS, the value of supply shall exclude the taxes leviable under GST (i.e. 'Central tax', 'State tax', 'UT tax', 'Integrated tax' & Cess). Thus, no tax shall be deducted on 'Central tax', 'State tax', 'UT tax', 'Int .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... y worth Rs. 10,000/ to a Municipality where contract for supply is for Rs.15,00,000/-.The rate of GST is 18%. Supplier and the deductor are in the same State. Following payment is being made by this Municipality to X, Rs. 10,000 (value of Supply) + Rs 900 (Central Tax) + Rs 900 (State Tax). Value of supply = Rs.10,000/- Tax to be deducted from payment: Central Tax = 1% on Rs.10,000/= Rs. 100 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... tract excluding tax= 2,60,000x100/118= Rs.2,20,340/- Since, the value of taxable supply in the contract does not exceed Rs.2.5 Lakh, deduction of tax is not required. Example 3:- Supplier is registered under composition scheme Supplier ZA is a person registered under the composition scheme in Jharkhand who makes taxable supply worth Rs.10,000/ to a Local Authority of Jharkhand where value of ta .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X