TaxTMI 
TaxTMI 
XYZ received services from a foreigner where the invoice value of the foreigner is say 100 $ (INR say Rs. 8000. XYZ separately paid TDS on the same to the Indian govt. say of Rs.1000/-. XYZ is required to pay GST under reverse charge on import of service on Rs.8000/- or Rs.8000/- + Rs.1000/- i.e. on Rs.9000/-?
GST on TDS
27 Mar 2023 
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GST reverse charge on import of services: whether TDS forms part of the taxable consideration for liability.
Whether TDS under the Income Tax Act forms part of consideration for GST under the reverse charge mechanism on import of services is disputed: one view treats recipient-borne TDS as part of consideration and taxable under RCM, while tribunal authorities treat TDS as a statutory withholding not comprising value or consideration; the issue requires specific GST-law analysis despite administrative SOP and Board flyer references. (AI Summary)
Whether TDS under the Income Tax Act forms part of consideration for GST under the reverse charge mechanism on import of services is disputed: one view treats recipient-borne TDS as part of consideration and taxable under RCM, while tribunal authorities treat TDS as a statutory withholding not comprising value or consideration; the issue requires specific GST-law analysis despite administrative SOP and Board flyer references. (AI Summary)