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

[Asked by 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

Tax deduction at source should be calculated excluding separately stated GST, under income-tax TDS guidance.
Where GST is indicated separately on the invoice, tax deduction at source under income-tax TDS rules is to be made on the amount excluding GST; the GST-specific TDS provision was not in force at the time, and administrative guidance confirms the exclusion of separately stated CGST/SGST/IGST from the TDSable base.