From the following information of independent cases, your expert advice, with appropriate reasoning is sought on the applicability of TDS/TCS provisions of the CGST Act, 2017. You shall also quantify the amount of TDS/TC

CS Professional · Advanced Tax Laws · PYQS · December 2022
From the following information of independent cases, your expert advice, with appropriate reasoning is sought on the applicability of TDS/TCS provisions of the CGST Act, 2017. You shall also quantify the amount of TDS/TCS, as the case be, if the same is applicable. Note: Rate is CGST, SGST and IGST are 9%, 9% and 18% respectively. All the amounts given are exclusive of taxes. (ii) Tarun, a registered supplier in Maharashtra, was awarded a work contract by Government of Maharashtra amounting ₹ 4,00,000. Of this, value of exempt supply was ₹ 1,00,000.

Answer & Explanation:

A State Government is required to deduct tax from the payment made to the supplier of taxable goods and/or services, where the total value of such supply (excluding GST) under a contract, exceeds ₹ 2,50,000. TDS to be deducted in the given intra-State supply (since place of supply and location of supplier is in Maharashtra) is as follows: = (₹ 4,00,000 - ₹ 1,00,000) x 1% = ₹ 3,000 (CGST) and ₹ 3,000 (SGST) TDS Applicable on Amount Excluding Tax.

Topics: GST

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