On what Value tax to be deducted at source (TDS)

[Guest]

Hi all,

We are man power supplying company (Except Security personnel we provide all kind of manpower) we are subjected to charge GST @18%

My Doubt is when we raise our bill like mentioned below:

Manpower supply Charges 100000

SGST @ 9% 9000

CGST @ 9% 9000

Total value 118000

Here, the doubt is whether the recipient of service should deduct tax at source @ 2% on 100000 or 118000.

Kindly Clarify my doubt.

Thanks in advance:-)

Rgds

Sridharan

AI Summary

Manpower company queries if TDS applies to total invoice with GST or just base amount; Section 51 in focus. A manpower supply company is seeking clarification on whether tax deducted at source (TDS) should be applied to the total invoice amount, including GST, or just the base amount. The consensus among respondents is that TDS should be calculated on the base amount of 100,000, excluding GST. One respondent notes that Section 51 of the CGST Act regarding TDS is not yet in force, so TDS may not apply currently. Another highlights a CBDT circular clarifying that TDS should exclude the GST component when GST is separately indicated in the invoice.