Query on TDS

[keerthirahul123]

Friends,

I have been asked to deduct 1% TDS from the builder while making the 2nd payment. So my query is

Lets take the below calculation.
A)
Amount to Pay - 100
GST @ 5% - 5
Total payment is 105

Now with 1% TDS
B)
Amount to Pay - 100
1% TDS - 1rs
GST @ 5% - 4.95 ( 100 -1 = 99 and 5% of 99 is 4.95)
Total payment is 103.95

The builder says that GST will be calculated on the total amount and it will not consider 1% TDS. Is this correct?

i calculated the above B and sent the payment and he explained the above statement and asked me to send the difference amount. So do we have to pay GST on the 1% TDS withheld?

 

[superstar@123]

You need to pay 104

Net Amount	100.00​
GST	5.00​
Gross Amount	105.00​
TDS (on net amount)	1.00​
Payment (Gross amount - TDS)	104.00​

 

[keerthirahul123]

Thank you for the clarification..

 

[sadhunath]

Usually, you purchase a flat at all inclusive price. So, 100 should be an all inclusive price.