TDS provision - Labour Contractor

[Jatinder Kumar]

Dear Sir,

Please note, Office staff provided by labour contractor (Un-registered dealer) to our partnership firm (Registered under GST)

Payment around ₹ 50,000 per month paid to labour contractor.

Please guide me, TDS provisions under GST is applicable or not on such transactions.

Thanks & Regards,

Jatinder Kumar

AI Summary

Partnership Firm Questions TDS Applicability Under GST for Payments to Unregistered Contractor; Clarification Sought on Section 51(1) CGST Act A partnership firm inquires about the applicability of TDS provisions under GST for payments made to an unregistered labor contractor, amounting to 50,000 monthly. Experts clarify that TDS under GST applies to transactions exceeding 2.50 lakhs, with specific conditions outlined in Section 51(1) of the CGST Act, 2017. If the service provider is unregistered, the firm may need to pay tax under the reverse charge mechanism. The applicable GST rate for services provided by the labor contractor is 9% under CGST. The firm seeks further clarification on whether they fall under the notified persons required to deduct TDS.