July 12, 2017
No TDS on GST component of service remuneration - Clarification issued by CBDT
CBDT has made a clarification clarification dated 19th July,2017 which states that 'GST on services' is not to be included while making TDS on remuneration of such services to a resident payee when such GST component is separately indicated. It further clarifies that GST for this purpose includes Integrated Goods and Services Tax, Central Goods and Services Tax, State Goods and Services Tax and Union Territory Goods and Services Tax.
Consequently, any reference to 'service tax' in an existing agreement or contract which was entered prior to July 1, 2017 shall be treated as 'GST on services' with respect to period from 01.07.2017 onward till the expiry of such agreement or contract".
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