The Central Board of Indirect Taxes and Customs ( CBIC ) has notified exemption from tax deduction at source (TDS) to some authorities under the Defence Ministry under the Goods and Services Tax regime.
“Provided that with respect to persons specified under clause (a) of sub-section (1) of section 51 of the Act, nothing in this notification shall apply to the authorities under the Ministry of Defence, other than the authorities specified in the Annexure-A and their offices, with effect from the 1st day of October, 2018.”
The Government mandated deduction of TDS from 1st October 2018.
The tax would be deducted @1% of the payment made to the supplier (the deductee) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh fifty thousand rupees (excluding the amount of Central tax, State tax, Union Territory tax, Integrated tax and cess indicated in the invoice).
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