What is TDS?

TDS means Tax Deducted at Source.

It is a tax which is to be deducted on some expenses and payments

As per Income Tax Act, persons responsible for making payments are required to deduct TDS at different rates.

Similarly as per GST Laws also,TDS is required to be deducted on certain payments


Hence 2 TDS will be deducted

  1. TDS as per Income Tax
  2. TDS as per GST


TDS as per Income Tax is deposited to income Tax Department

TDS as per GST will be deposited separately TO State Government in case of SGST and Central Government in case of UTGST

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What is the Rate of TDS in GST?

Rate of TDS IS 1% under GST (Section)

If Payment of Contract is greater than 250000

(Note:- Rs 250000 amount is excluding taxes like GST, IGST, SGST)

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.