Let us check first
how to deduct TDS on GST bill example below
:
Let's say you hire a consultant for a service and the total invoice amount is Rs. 1,00,000. The applicable TDS rate for the service is 10%.
Calculate TDS Amount:
TDS Amount = Invoice Amount × (TDS Rate/100)TDS Amount
=
Rs
.1,00,000 × (10/100) =
Rs
.10,000
Deduct Rs. 10,000 from the total invoice amount.
Net Payment to the Service Provider = Rs. 1,00,000 - Rs. 10,000 = Rs. 90,000
After deducting TDS, the deductor needs to generate a TDS certificate in Form 16A and provide it to the service provider.
I have shared the essential method on TDS deduction on GST bill:
Ensure that TDS is applicable to the transaction.
If you are required to deduct TDS under GST, you must register as a TDS Deductor on the GST portal using your GSTIN.
Request the supplier to provide you with a GST invoice.
Calculate the TDS amount to be deducted. The TDS rate is generally 2% of the total invoice value, including GST.
Deduct the calculated TDS amount from the total invoice value.
Deposit the deducted TDS amount with the government within the given time frame.
File the TDS return in Form GSTR-7 on the GST portal.
This is
how to deduct TDS on GST bill example
.
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The aim of TDS is to collect tax at source, hence the name, Tax Deduction at Source (TDS). In this arrangement, the amount payer has to deduct tax at source in the deductee’s bill and submit the same to the central government. Now you must be thinking how is TDS calculate on bill amount, how to deduct TDS on GST bill. Well don’t worry I can help you figure these things out. Just follow through and read patiently.
How is TDS calculated on Bill Amount?If the total value of the contract exceeds Rs. 250000 then the TDS rate of 2% is applicable under Goods and Services Tax.
How to deduct TDS on GST bill?The net amount of the bill can be calculated after arriving at the total bill amount including GST and TDS. But you must know that TDS is deducted on the basic bill amount without GST. Let us understand how to deduct TDS on GST bill from the example below:
The selling price of 5 Smartphones @ Rs. 20000 per smartphone (Taxable Value) |
Rs. 100000 |
If the rate of tax (CGST) on Smartphone is 28% |
|
CGST @ 14% |
Rs. 14,000 |
SGST @ 14 % |
Rs. 14,000 |
Total Invoice Value |
Rs. 1,28,000 |
Rs. 100000 x 1 % = Rs. 1000 (CGST) Rs. 100000 x 1%. = Rs. 1000 (SGST) |
This is how to
deduct TDS on GST bill. I hope this was easy to understand. If so please leave a like for me :)
How to Deduct TDS on GST Bill?
Cheshtha
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2
3 Year
2021-08-18T14:19:19+00:00 2023-11-16T08:39:26+00:00Comment
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