Is TDS still applicable with the application of GST?
TDS (Tax Deducted at Source) is the mechanism wherein a person, while making payment to another person deducts an amount known as TDS and then hands over the remaining amount to the recipient.
TDS is deducted to make sure there is no loss of revenue to the government in case the person receiving payment forgets or deliberately chooses to pay his taxes.
So, naturally TDS provisions are applicable under GST as well.
TDS is to be deducted at the rate of 1 percent on payments made to the supplier of taxable goods and/or services, where the total value of such supply, exceeds two lakh fifty thousand rupees.
In simple words, deduct 1% TDS if you’re making a payment to a supplies if value of contract excludes rs 2,50,000.
This of course, is subjected to various rules and regulations made under this behalf.
So in a nutshell, Yes TDS will be applicable under GST.