List of the Goods or Services are applicable to deduct TDS in GST

TDS or Tax Deducted at Source is a mechanism under GST where the person making the payment is required to deduct tax at a prescribed rate and deposit it with the government. This provision is applicable to certain goods and services under GST.

Let’s take a look at the list of goods and services that are subject to TDS under GST.

1. Rent: If you are paying rent for your commercial property and the rent exceeds Rs. 50,000 per month, then you are required to deduct TDS at the rate of 2% from the total rent amount.
2. Works Contract: If you are making payment to a contractor for any construction work, then you are required to deduct TDS at the rate of 2% from the total contract amount.
3. Government Contracts: If you are making payment to a contractor for any government work, then you are required to deduct TDS at the rate of 2% from the total contract amount.
4. Professional Services: If you are making payment to a professional for any services rendered such as legal, medical, engineering, accounting, etc., then you are required to deduct TDS at the rate of 2% from the total amount.
5. Director’s Remuneration: If you are paying remuneration to a director of a company, then you are required to deduct TDS at the rate of 2% from the total remuneration amount.
6. Commission or Brokerage: If you are paying commission or brokerage to any agent or broker, then you are required to deduct TDS at the rate of 2% from the total amount.
7. Interest: If you are paying interest on any loan, then you are required to deduct TDS at the rate of 10% from the total interest amount.
8. Royalty: If you are paying royalty to any person or entity for the use of any intellectual property rights, then you are required to deduct TDS at the rate of 2% from the total royalty amount.
9. Advertisement Services: If you are making payment to any advertising agency, then you are required to deduct TDS at the rate of 2% from the total amount.
10. Catering Services: If you are making payment to any caterer for providing catering services, then you are required to deduct TDS at the rate of 5% from the total amount.

It is important to note that TDS under GST is applicable only if the total value of the goods or services supplied exceeds Rs. 2.5 lakhs in a single transaction.

In case of non-compliance, the deductor may be liable to pay interest, penalty or face legal proceedings.

In conclusion, the list of goods and services that are subject to TDS under GST is quite extensive. Therefore, it is important for businesses to be aware of their TDS obligations and comply with the same to avoid any legal complications.