Iam having a business and i am planning to buy the boiler plant for my business ... which includes boiler various equipment and the palnt also would be installed by that boiler manufacturer.... the cost pf boiler including all equipment and also including installation is 10 lakhs.. do i have to deduct tds on the payment to be given to boiler manufacturer..? And also i am planning for a cold storage chamber and the same question arises for that.. means the bill include capital goods plus installation charges.. 2 - as in gst if the service provider receive advance so he have to show that amount in gstr1 and deposit the tax on same .. the question is that the giver of the would also have to show the amount given in advance in any gst return and claim the itc on advance given.. or itc will be claimed when the final invoice is issued..? So the giver of the advance have toh show the advance amount in any gst return ..gstr3b ..? On he else have to do nothing and just give advance amount?
Hi
If the amount of installation charges are mentioned separately in the invoice and the amount so charged exceed the specified limit, TDS shall have to be deducted under section 194C.
Specified limit under 194C- 30000 per invoice or 1 lacs annually
ITC can be claimed only when the invoice is issued by the supplier. For advance paid, nothing needs to be shown in GSTR.
In bill only mentioned boiler plant with complete installation =10 lakh rupees... there is not any bifurcation in the bill ... so do i have to cut tds? 2- a firm having 8 employees .. have also the 3 sons of the owner also works in the firm for which they don’t charge anything.. instead their father give some money from the profit to spend on.. do the firm is required to get registered under esi epf? 3- I suppose to receive give a commercial building contract to a contractor.. and i give 2 lakh rupees advance for which he give receipt of advance received to me on which he pays gst .. means 1 lakh rupees receipt is inclusive of gst..let say 88000 +12000 gst.. As a contract i have to deduct the tds on advacne amount given to contractor.. so on which amount i have to deduct..? 88000 or 1 lakh..? If on 88000 than 12000 extra rupee where to be shown by me ..? As 12000 rupee advance gst paid by contractor can’t be shown and clalimed by me in gst return unless he issues final invoice say 12 months later..? So where is should show 12000 rupees in my account?
1. No.
2. No.
3. You need to book and avail ITC only when invoice is received from the supplier.
TDS deduction shall be on amount exclusive of GST.
Hi,
Yes, tds needs to be deducted as the charges exceeded the limit specified u/s 194C.
-As per section 194C,the payer has to deduct Tax at Source from the sum to be paid to the contractor or sub-contractor where;
-Input tax credit can be claimed upon receipt of invoice and goods.
-There is no need to show advance payment in GSTR.
1. No.
2. No.
3.Input tax credit can be claimed upon receipt of invoice.
Hi
1.No
2.No
3.ITC can be claimed upon receipt of Invoice only.
Hope it helps
Hello,
If the supplier gives a consolidated invoice as Boiler Plant supplied including installation charges then TDS is not applicable. Otherwise, if he gives break up in the invoice of plant and installation charges, then TDS would have to be deducted on the installation charges.
You will have to claim ITC when the final invoice is issued to you by the supplier. You are not required to show advance payment in your GSTR.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
1. No TDS to be deducted, as consolidated invoice issued.
2. No.
3. TDS would be deducted on Rs. 88000, as TDS would not be deducted on the GST component if the amount of GST is shown separately in the invoice.
1 TDS needs to be deducted if shown separately in bill.
2 supplier needs to pay GST on advance and receiver can take credit once bill is received and services is offered.
3 no TDS if no bifurcation.
No ESI EPF.
TDS is never deducted on GST so you need to deduct it on 88000
In books you can claim credit you can't claim it in your GST return.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Hi,
- You need to deduct TDS on the service portion only i.e. installation charges. If it is not mentioned specifically on the invoice then you are not required to deduct any TDS.
- No registration required in EPF/ ESI.
- You need to deduct TDS on Rs.88k only. You will be eligible to claim ITC of 12k ok issue of invoice only.
Thanks
