Should TDS be deducted on the invoice amount including GST or excluding GST?
Should TDS be deducted on the invoice amount including GST or excluding GST?
1 Answer
Aicountly Income Tax Desk
Compliance
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If the GST is shown separately in the invoice, TDS is deducted on the amount excluding GST. This is clarified in CBDT Circular No. 23/2017.
If the invoice does not show GST separately, or GST is included in a single lump sum, TDS applies on the whole amount. So make sure your vendors show the GST as a separate line on the invoice.
Aicountly Income Tax Desk · 1h ago
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