Tax Deduction at Source (TDS) and Net Taxable Turnover

Posted on 11 June 2022 Category : GST terms difference

How to differentiate Net Taxable Turnover with Tax Deduction at Source (TDS) ?

What is Net Taxable Turnover? How does Tax Deduction at Source (TDS) work under GST regime? What are the difference between Net Taxable Turnover and Tax Deduction at Source (TDS)?

Under GST system, the following information explains about Net Taxable Turnover and Tax Deduction at Source (TDS).

Turnover, in common parlance, is the total volume of a business. The term ‘aggregate turnover’ has been defined in GST law as under:“Aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess.

Tax Deduction at Source (TDS) is a system, initially introduced by the Income Tax Department. It is one of the modes/methods to collect tax, under which, certain percentage of amount is deducted by a recipient at the time of making payment to the supplier. It is similar to “pay as you earn” scheme also known as Withholding Tax, in many other countries

The details about Net Taxable Turnover and Tax Deduction at Source (TDS) with simple language from GST terms have been mentioned in this web blog separately. I suggest you to read these articles on Net Taxable Turnover and Tax Deduction at Source (TDS), so as to enable you to have a clear idea on these shipping terms.

For your immediate reference, We give below web links on Net Taxable Turnover and Tax Deduction at Source (TDS) separately below. You may kindly read the below links to know more about Tax Deduction at Source (TDS) and Net Taxable Turnover.

What is Net Taxable Turnover under GST

What is Tax Deduction at Source (TDS) under GST

The above information easily explains about Tax Deduction at Source (TDS) and Net Taxable Turnover.

I hope, you have satisfied with the difference between Net Taxable Turnover and Tax Deduction at Source (TDS) explained above. Do you have different thought on difference between Tax Deduction at Source (TDS) and Net Taxable Turnover?

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