Required Guidance & Suggestions

[Mayur Patel]

I am a proprietor of a firm engaged in website and software development.I have following concerns regarding GST and TDS for which i am seeking guidance from fellow expert of the community;

Question: is the following scenario correct ? | Am i eligible deductee for TDS ?

- I have raised invoice to my client for ₹ 1,00,000 where service charge is ₹ 84745.76 and GST(@18%) is ₹ 15254.24.

- Client paid me ₹ 90,000 ; Deducted ₹ 10,000 as TDS @ 10 % rate

It is to be noted that

- The location of supplier and place of supply of service is different from the State where the recipient is registered.(I have read that TDS under GST regime is not applicable for intra state supply of service,is that true ?)

- And,The client is eligible person to deduct TDS as his annual turnover is beyond ₹ 1 Cr. and is auditing his accounts.

I may be sound foolish asking question but i am not aware of taxation web for business.Any help regarding will be appreciated.

AI Summary

TDS under GST limited: specified authorities deduct, e commerce collects; routine payers generally not obliged to deduct GST TDS.
Whether a payer must deduct tax on payments for software and website development and whether GST is included in the withholding base. The replies distinguish income-tax withholding (as the likely 10% deduction observed) from the GST regime, under which tax is deducted at source only by specified government and local authorities and electronic commerce operators collect tax at source; routine private recipients are generally not required to deduct GST TDS. Experts advise computing any withholding on the value of supply exclusive of GST.