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On what Value tax to be deducted at source (TDS), Goods and Services Tax - GST

Issue Id: - 112608
Dated: 16-8-2017
By:- sridharan Visu
On what Value tax to be deducted at source (TDS)

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Hi all,

We are man power supplying company (Except Security personnel we provide all kind of manpower) we are subjected to charge GST @18%

My Doubt is when we raise our bill like mentioned below:

Manpower supply Charges 100000

SGST @ 9% 9000

CGST @ 9% 9000

Total value 118000

Here, the doubt is whether the recipient of service should deduct tax at source @ 2% on 100000 or 118000.

Kindly Clarify my doubt.

Thanks in advance:-)



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Posts / Replies

Showing Replies 1 to 5 of 5 Records

1 Dated: 16-8-2017

The value of supply shall be taken as the amount excluding CGST, SGST, IGST, UTSGST. TDS is i.e. on 100,000/- .

2 Dated: 16-8-2017
By:- Rajagopalan Ranganathan


Section 51 of CGST Act, 2017 provides for 'Tax deduction at source. " However this section is not brought into force till today. Therefore the question of deduction of tax at source will not arise at present.

3 Dated: 17-8-2017
By:- Ganeshan Kalyani

Dear Visu, please clarify whether you mean TDS of Income tax act or GST act. From your query i believe you are referring income tax tds. If it is correct then TDS will be deducted on basic value i.e. excluding GST.

4 Dated: 20-8-2017
By:- Hariharan Sundaram

Views of Kalyanji is correct. As per CBDT circular 23/2017 dated 19th july modifying the earlier circular 1/2014, has clarified that wherever in terms of the agreement or contract between the payer and the payee, the component of 'GST on services' comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XVIl-B of the Act on the amount paid or payable without including such 'GST on services' component.

5 Dated: 24-9-2017

Dear sir,

please note :-

TDS is Deducted 2% on 1,00,000/- only for companies & TDS is Deducted 1% on 1,00,000/- for Non-Companies




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