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

TDS under GST applies where a notified deductor must deduct tax; otherwise reverse charge may apply to unregistered suppliers.
TDS under GST applies only when the payer is a notified deductor under Section 51; private payers are not automatically liable. If the supplier is unregistered, the recipient may be liable to pay tax under the reverse charge mechanism under Section 9(3)/9(4). Applicable tax rates and registration obligations are set by the relevant GST rate and notification schedules and depend on service classification, location and notified status of the deductor.