Correct valuation methodology for ascertainment of GST on TCS under the provisions of the Income Tax Act, 1961
The CBIC has issued Circular No. 76/50/2018-GST clarifying certain issues related to GST.
The following clarification has been given on the subject:
Question:
What is the correct valuation methodology for ascertainment of GST on Tax collected at source (TCS) under the provisions of the Income Tax Act, 1961?
Answer:
1. Section 15(2) of CGST Act specifies that the value of supply shall include “any taxes, duties cesses, fees and charges levied under any law for the time being in force other than this Act, the SGST Act, the UTGST Act and the GST (Compensation to States) Act, if charged separately by the supplier.”
2. It is clarified that as per the above provisions, taxable value for the purposes of GST shall include the TCS amount collected under the provisions of the Income Tax Act since the value to be paid to the supplier by the buyer is inclusive of the said TCS.
Liability under the Motor Vehicles Act can’t be decided on the grounds of sympathy alone but must be established by…
ICAI notifies Dates of CA Foundation, Intermediate and Final Exams May 2026 The Institute of Chartered Accountants of India has…
Interest under section 234A cannot be levied on self-assessment tax paid before the due date of filing of return of…
SEBI defers timeline for implementation of Phase III of Nomination SEBI had issued a circular on “Revise and Revamp Nomination…
RBI revises directions on opening & Maintenance of Cash Credit accounts, Current Accounts and Overdraft Accounts by all Banks Reserve…
Resolution Professional can’t claim income tax refund for a period prior to approval of the resolution plan In a recent…