Mr. Abinash has received net amount of ₹3,24,000 (after TDS) from Voygers Ltd. on 5th February, 2019 for taxable service rendered in the month of January, 2019. The net payment is after TDS under section 194J of the Inco

Computation for Mr. Abinash Let Value of Taxable Service = X + GST @ 18% of value of Taxable Services (18% of X) = 0.18X Value of Bill = 1.18X - TDS @ 10% under section 194J of Income Tax Act (10% of X) = (0.1X) Net amount paid by the client = 1.08X Net amount received by Abinash = ₹3,24,000 (A) Value of Taxable Supply (X) = (324000 / 1.08) = ₹3,00,000 (B) Amount of TDS under Section 194J (₹3,00,000 x 10%) = ₹30,000 (C) The GST Payable: CGST = 9% of ₹3,00,000 = ₹27,000 SGST = 9% of ₹3,00,000 = ₹27,000 Total GST = ₹54,000 Note: CBDT vide Circular No. 23/2017, dated 19th July, 2017 has clarified that wherever in terms of the agreement or contract between the payer and the payee, if "GST on Services" component has been indicated separately in the invoice, then no tax would be deducted at source under Chapter XVII-B of the Income-tax Act, 1961 on such GST component as GST for these purposes will include CGST, SGST, IGST and UTGST.