Modification of Circular No.1 of 2014 in view of substitution of Service Tax by Goods and Services Tax (GST)

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....7 Subject: Modification of Circular No.1 of 2014 in view of substitution of Service Tax by Goods and Services Tax (GST). The Central Board of Direct Taxes (the Board) had earlier issued Circular No. 1/2014 dated 13.01.2014 clarifying that wherever in terms of the agreement or contract between the payer and the payee, the Service Tax component comprised in the amount payable to a resident is ....

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....efore, there is a need to harmonize; the content of Circular No. 1/2014 of the Board with the new system for taxation of services under the GST regime. 4. In the light of the fact that even under the new GST regime, the rationale of excluding the tax component from the purview of TDS remains valid, the Board hereby clarifies that wherever in terms of the agreement or contract between the payer ....