EXAMPLE-53  

Mr. X, a Chartered Accountant has received advance payment of Rs. 360000 for professional services after deduction of income tax u/s 194 J of Rs 40000. What is the value of services for the purpose of GST.  

Answer

TDS is the part of taxable value of supply according to section 15. As per section of 15 CGST Act, any tax, duties, cess, fees & charges other than chargeable under CGST/SGST/UGST Act shall form part of value. In view of this provision TDS of Rs 40000 deducted at source is includible in the value of supply.

Hence GST is payable on Rs. 360000+ Rs. 40000 = Rs. 400000.