HIM Corporation, a public sector undertaking registered under section 51(1) (d) of the CGST Act, 2017 in Shimla (Himachal Pradesh) for deduction of…
CA Intermediate · Taxation · PYQS · May 2026
HIM Corporation, a public sector undertaking registered under section 51(1) (d) of the CGST Act, 2017 in Shimla (Himachal Pradesh) for deduction of tax at source, provided the following details regarding payment of bills during the month of May 2025: Sr. No. Particulars Value of supply (₹) 1 Hilux Traders, registered in the State of Himachal Pradesh, for supply of lab equipment. 2,45,000 2 Arun, labour contractor registered in the State of Himachal Pradesh, for supply of manpower. 2,60,000 3 Adhunik Heavy Electricals, a registered public sector undertaking registered in Raipur (Chhattisgarh), for supply of goods. 3,80,000 4 Jain & Sons registered in Ludhiana (Punjab): (a) for providing rights to use space for hoarding mounted on the ground in the State of Himachal Pradesh 4,20,000 (b) for providing rights to use space for hoarding mounted on the ground in Chandigarh (Punjab) 3,00,000 Additional information: 1. All the amounts given are exclusive of GST. 2. Rate of GST for goods supplied by Adhunik Heavy Electricals is IGST 5%, CGST 2.5%, SGST 2.5%. For all other transactions, rate of GST is IGST 18%, CGST 9%, SGST 9% Calculate the amount of tax deducted at source (TDS) to be deposited by HIM Corporation for the month of May 2025.
Suggested Answer and Working Notes:
Computation of TDS to be deposited by HIM Corporation Particulars Value of supply (₹) TDS to be deposited CGST (₹) SGST (₹) IGST (₹) Payment to Hilux Traders [Since total contract value of taxable supply does not exceed - 2,50,000, TDS is not deductible] 2,45,000 - - - Payment to Arun [TDS is deductible @ 1% each under CGST & SGST, since total contract value of taxable supply exceeds - 2,50,000 and it is an intra-State supply since location of supplier and place of supply (being location of recipient) is Himachal Pradesh.] 2,60,000 2,600 2,600 - Payment to Adhunik Heavy Electricals [No TDS is deductible since the supply has been made by a PSU to another PSU] 3,80,000 - - - Payment to Jain & Sons (a) For providing right to use hoarding space in Himachal Pradesh [TDS is deductible @ 2% under IGST since the contract value exceeds - 2,50,000 and it is an inter-State supply since place of supply being the location where the hoardings are located is Himachal Pradesh while location of supplier is Punjab.] 4,20,000 8,400 (b) For providing right to use hoarding space in Punjab [No TDS is deductible, since location of the supplier (Punjab) and the place of supply (being the location where the hoardings are located, i.e. Punjab) is in a State which is different from the State of registration of the recipient (Himachal Pradesh).] 3,00,000 - - - Total amount of TDS to be deposited 2,600 2,600 8,400
Topics: Paper 3B: Goods and Services Tax
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