QuestionsCategory: GSTGST TDS Applicability
Vishal asked 4 years ago

Please let me know applicability of TDS under GST Act (2%):
Nature of business:  P Ltd. (PSU Company) applies to tender with Govt Dept in its own name and Govt Dept awards tender to P Ltd. Then P Ltd. does not execute tender on its own but sub-contract to various private sector units and those private sector units execute tender and raise bill to P Ltd. Then P Ltd. raises invoice to Govt Dept to collect consideration. When consideration is received by P Ltd. (PSU Company) from Govt Dept. then it pays the amount to those private sector units and earn % of commission from those units.
Query: P Ltd. (PSU Company) has to deduct TDS under GST @2% while making payment to those private sector units where it exceeded Rs. 2.5 lacs to single unit?