A.K. Services registered under GST in Chennai is engaged in supply and service of various goods and services. For the month of November, 2020, it has provided the following data: Particulars of Work Contract 1 Contract 2

According to Section 51 of the Central Goods and Services Tax Act, 2017, TDS is to be deducted @ 1% by the recipient from the payment made or credited to the supplier (Deductee) of taxable goods or services or both, where the total value of such supply under a contract exceeds two lakh and fifty thousand (₹ 2,50,000) rupees. Since in this case of Contract 1 the contract value including goods and services (excluding GST) is ₹ 2,50,000 (1,80,000+70,000) it does not fall under the provisions of TDS. Hence no, tax at source is required to be deducted in this case. As per the provision in section 51(1) of the Central Goods and Services Tax Act, 2017 no deduction of tax at source shall be made if the location of the supplier and the place of supply is in a State or Union Territory which is different from the State or as the case may be Union Territory of registration of the recipient. Since in the case Contract 2 the location of the supplier is in Chennai and the place of supply also is in Chennai but the place of location of the recipient is in Karnataka it appropriately falls in the exception envisaged in this provision and therefore, no tax is liable to be deducted.