• Reverse charge

What will be the treatment of 2% TDS under GST in reverse charge mechanism on the part of vendor and vendee
Asked 1 month ago in GST from Kolkata, West Bengal
Hi,

- No TDS is required to be deducted in case of RCM.

Thanks
Vivek Kumar Arora
CA, Delhi
1637 Answers
48 Consultations

5.0 on 5.0

Hi,

Hope you are doing well !

There is no requirement of tds deduction in case of RCM.
Payal Chhajed
CA, Mumbai
1002 Answers
8 Consultations

4.8 on 5.0

Hi,

CBDT has clarified through Circular No. 23/2017 that if GST on services has been indicated separately in the invoice, then no tax would be deducted on GST component.
Karishma Chhajer
CA, Jodhpur
543 Answers
3 Consultations

5.0 on 5.0

There is no need to deduct TDS in a reverse charge mechanism

Regards.
Nikhil Khanna
CA, Mumbai
1377 Answers
17 Consultations

5.0 on 5.0

I am confused if you are talking about tds under income tax or TDS under GST?
if you are talking about TDS under income tax it won't be deducted on GST amount be it on reverse charge or forward charge.

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Thank you

OK sorry.
2℅ TDS is required to be deducted under gst if the contract value is above 2.5 lakh
Out of this 1℅ would be towards cgst and 1℅ would be towards sgst.
This needs to be deducted over and above gst that you are going to charge.
I think its unfair because in some cases 3 things would be applicable say in cass of rent gst+TDS in gst+ TDS in income tax would be applicable.
Naman Maloo
CA, Jaipur
497 Answers
4 Consultations

5.0 on 5.0

Hi

In reverse charge, TDS is deducted on amount exclusive of GST. TDS is not deducted on the GST amount.
Lakshita Bhandari
CA, Mumbai
2177 Answers
71 Consultations

5.0 on 5.0

Hi

No TDS required in reverse charge mechanism.
Swati Agrawal
CA, Indore
681 Answers
1 Consultation

5.0 on 5.0

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