Question

As TDS is appliacble on contact value of Rs. 2.5 Lacs or more w.e.f. 01.10.2018, please let us know on what type of contact it is applicable. On Construction work or all type of contacts entered may be goods or services.

Answer

In GST as per section 51 of CGST Government mandates
(a) a department or establishment of the Central Government or State Government; or
(b) local authority; or
(c) Governmental agencies; or
(d) such persons or category of persons as may be notified by the Government on the recommendations of the Council,
(hereafter in this section referred to as 'the deductor'), to deduct tax at the rate of one per cent. from the payment made or credited to the supplier (hereafter in this section referred to as 'the deductee') of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees
Thus in view of above TDS is deducted by the above specified persons on all taxable supplies of goods or services where value of supplies under agreement/contract exceeds Rs 2.5 lakhs irrespective of nature of contract (whether it is supply of goods or services but it must be taxable).  (Reply dt.16/11/2018)