Is TDS deducted on the GST amount shown in a professional fee invoice?
The invoice shows the fee and GST as separate lines.
1 Answer
AICOUNTLY Income Tax Desk
Compliance
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If GST is shown separately in the invoice, TDS under the Income Tax Act is deducted on the amount excluding GST. If the invoice shows a single consolidated amount with no separate GST, TDS applies to the whole amount. This is the position under CBDT Circular No. 23/2017.
The rate depends on the nature of the payment, for example Section 194J for professional fees. Confirm the right section for your case with your CA.
AICOUNTLY Income Tax Desk · 1h ago
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