The tax deduction at source is applicable to all supplies subject to condition that the value of supply under a contract is more than Rs. 2,50,000.
Authority for Advance Ruling — TDS provisions under Section 51– The applicant is a trust and is involved in executing civil works contract. He has sought advance ruling in respect of the Interpretation of the term “a contract” for TDS applicability under Section 51 of the GST Act. In the absence of any contract, or contract of continuous supply, whether TDS provisions under Section 51 is applicable for every supply of goods and services? Or whether the single tax invoice shall be considered as “a contract” or aggregate value of purchase from a vendor for the whole year be considered as a contract.
Held that:- The Hon’ble Authority for Advance Ruling held that the tax deduction at source is applicable to all supplies subject to condition that the value of supply under a contract under scenario no. 3 and 4 and purchase order under scenario no. 2 is more than Rs. 2,50,000/- and invoice value is only applicable for scenario no. 1 as the basis for determining the “value of supply” under a contract.