Free tool for coworking and managed office operators

How much should your client pay you after TDS?

Enter a monthly licence fee and how your client deducts TDS. See the GST on the invoice, the TDS on the fee alone, what should reach your bank, and the TDS to look for in Form 168.

Fee and GST

Monthly fee

₹

Licence or membership fee, before GST and after any agreed discount.

Number of months

months

Same invoice every month. 3 is a quarter, 12 a year.

Is the GSTIN you bill from in the same state as the centre?

The place of supply is where the centre is, not where the client is (IGST Act, section 12(3)). A Pune centre billing from its Maharashtra GSTIN charges CGST and SGST, even to a client based in Bengaluru.

How your client deducts TDS

Your client decides the section, not you. Practitioners differ, especially for hot desks, day passes and separately billed services. The TDS guide sets out both sides. Section numbers are under the Income-tax Act, 2025, from 1 April 2026.

Rent: building, furniture or fittings10%Section 393(1), Table serial 2(ii)(b) (old Act: Section 194-I(b))What most company clients use for managed offices and dedicated seats.Rent: plant, machinery or equipment2%Section 393(1), Table serial 2(ii)(a) (old Act: Section 194-I(a))Rent paid by a client that is not a specified person2%Section 393(1), Table serial 2(i) (old Act: Section 194-IB)Fees for technical services2%Section 393(1), Table serial 6(iii)(a) (old Act: Section 194J)Fees for professional services10%Section 393(1), Table serial 6(iii)(b) (old Act: Section 194J)Payments for work (contracts) at 1%1%Section 393(1), contractor payments entry (old Act: Section 194C)Payments for work (contracts) at 2%2%Section 393(1), contractor payments entry (old Act: Section 194C)Lower rate under your lower deduction certificateYour rateLower deduction certificate (Income-tax Act, 2025) (old Act: Section 197, Form 13)The client does not deduct TDS0%

The figures filled in are the Northstar Labs example from our guides (240 seats at ₹10,900), not a real client. Replace them with your own.

Your client should pay you each month

₹28,25,280

Invoice total ₹30,86,880 less TDS ₹2,61,600

TDS each month: ₹2,61,600
TDS for 12 months: ₹31,39,200

Each month’s invoice

Licence fee (taxable value): ₹26,16,000
CGST at 9%: ₹2,35,440
SGST at 9%: ₹2,35,440
Invoice total: ₹30,86,880
TDS at 10% of the fee, not the GST: − ₹2,61,600
Paid to you: ₹28,25,280

TDS is worked out on the fee without the GST, because the GST is shown separately on the invoice (CBDT Circular 23/2017). Shown to the paisa; your client may round.

For 12 months

Licence fee: ₹3,13,92,000
CGST and SGST: ₹56,50,560
Invoice total: ₹3,70,42,560
TDS: − ₹31,39,200
Paid to you: ₹3,39,03,360

What you should see in your tax statement

TDS for 12 months, in Form 168: ₹31,39,200
For each full quarter of invoices: ₹7,84,800

Section shown: Section 393(1), Table serial 2(ii)(b) (old Act: Section 194-I(b))

Against the client’s TAN and your PAN. You should also get a TDS certificate in Form 131 for the same amount. From the 2026-27 tax year, Form 168 replaces Form 26AS and Form 131 replaces Form 16A.

Watch for TDS on the GST

If the client deducts 10% on the invoice total instead of the fee, it deducts ₹3,08,688 and you receive ₹27,78,192: ₹47,088 more TDS a month than needed. That cash is held up until you claim it back in your return. Raise it the same week, before the quarter’s TDS statement is filed.

Your checklist

Record ₹2,61,600 of TDS against each invoice, with the amount received and the bank reference (UTR).
Each quarter, download Form 168 and the Annual Information Statement (AIS) from the income tax portal.
Match by the client's TAN, the quarter and the amount. Check the client used your correct PAN.
Check the section shown is the one the client agreed with you, and that it did not deduct on the GST.
Collect the TDS certificate (Form 131) for each quarter and keep it with the invoices.
A March invoice the client books as a year-end provision may show in the March quarter, even if paid in April.
Until the TDS shows in your statement, treat it as an open balance on the client's account. Ask for a correction statement if needed.

See how rivonOS records TDS on every receipt

General information, not tax advice. Rules as on 7 October 2026. Nothing you type leaves your browser.

Built on our TDS guide and GST guide for operators, reviewed by Chartered Accountants. General information, not tax advice. Rules as on 7 October 2026.

How the numbers are worked out

For one month's invoice. Every month is assumed to carry the same fee.

1
GST in the centre's state
CGST = fee × 9%, SGST = fee × 9%
When you bill from the GSTIN in the centre's state, which is where the place of supply is.
2
GST from another state's GSTIN
IGST = fee × 18%
Only when the GSTIN on the invoice is in a different state from the centre.
3
Invoice total
Fee + GST
SAC 997212, taxed at 18%.
4
TDS
Fee × TDS rate
On the fee alone, not the GST, when the GST is shown separately (CBDT Circular 23/2017).
5
Paid to you
Invoice total − TDS
What should reach your bank account. The TDS is your income tax paid in advance.
6
TDS in Form 168
TDS each month × months
What should show against the client's TAN in your annual tax statement.

A worked example

Northstar Labs, a company, licenses 240 seats at ₹10,900 per seat a month at Altura Workspaces' Kharadi centre in Pune. Altura bills from its Maharashtra GSTIN. Northstar treats the fee as rent for a building with furniture and fittings, at 10%. An illustrative example, not a real client.

	Each month	A year (12 months)
Licence fee (taxable value)	₹26,16,000	₹3,13,92,000
CGST at 9%	₹2,35,440	₹28,25,280
SGST at 9%	₹2,35,440	₹28,25,280
Invoice total	₹30,86,880	₹3,70,42,560
TDS at 10% of the fee, not the GST	₹2,61,600	₹31,39,200
Paid to Altura by bank transfer	₹28,25,280	₹3,39,03,360
TDS to expect in Form 168 and Form 131	₹2,61,600	₹31,39,200

If Northstar deducted 10% on the invoice total instead, it would deduct ₹3,08,688 and Altura would receive ₹27,78,192: ₹47,088 more TDS a month than needed.

In rivonOS, our coworking billing software, each payment is recorded with the TDS the client deducted, so the receipt and the invoice still match.

TDS rates and thresholds

The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. Amounts paid or credited up to 31 March 2026 follow the old Act. Almost every company client is a specified person, so 10% is the rate you will see most.

Payment	Old Act (1961)	Income-tax Act, 2025	Rate	Threshold
Rent for land, building, furniture or fittings, paid by a specified person	Section 194-I(b)	Section 393(1), Table serial 2(ii)(b)	10%	More than ₹50,000 for a month or part of a month
Rent for plant, machinery or equipment, paid by a specified person	Section 194-I(a)	Section 393(1), Table serial 2(ii)(a)	2%	More than ₹50,000 for a month or part of a month
Rent paid by a person who is not a specified person	Section 194-IB	Section 393(1), Table serial 2(i)	2%	More than ₹50,000 for a month or part of a month
Fees for technical services	Section 194J	Section 393(1), Table serial 6(iii)(a)	2%	₹50,000
Fees for professional services	Section 194J	Section 393(1), Table serial 6(iii)(b)	10%	₹50,000
Payments for work (contracts)	Section 194C	Section 393(1), contractor payments entry	1% or 2%	Per contract and yearly limits, as set out in the Act

Which entry applies to a coworking fee is debated: rent, fees for services or, for separately billed services, payments for work. The answer depends on the arrangement. Read the TDS guide for both sides.

Keep going

Guide: TDS on coworking and managed office fees Guide: GST on coworking and managed offices GST invoice checker

See how rivonOS records TDS on every receipt

Questions about TDS and GST on coworking fees

Should my client deduct TDS on the GST?

No, if the GST is shown separately on the invoice or agreement. CBDT Circular 23/2017 says TDS is deducted on the amount without the GST. A GST tax invoice under CGST Rule 46 shows it separately anyway.

Which TDS rate will my client use?

It depends on the arrangement, and your client decides. Most company clients treat a managed office or dedicated seat licence as rent for a building with furniture and fittings: 10% under section 393(1), Table serial 2(ii)(b) of the Income-tax Act, 2025 (section 194-I under the old Act). Some deduct under the fees for technical or professional services entries instead. Occasional use and separately billed services can be treated differently.

My client is in another state. Should I charge IGST?

Usually not. For a workspace licence the place of supply is where the centre is (IGST Act, section 12(3)). If you bill from the GSTIN in the centre's state, you charge CGST and SGST whatever the client's home state.

What are Form 168 and Form 131?

From the 2026-27 tax year, Form 168 is the annual tax statement that was Form 26AS, and Form 131 is the TDS certificate for payments other than salary that was Form 16A. The TDS your client deducts should show in your Form 168 against its TAN, and the client should give you a Form 131 certificate for it.

What if the TDS does not show up in my statement?

Ask the client to check the PAN, the quarter and whether its TDS statement has been filed, and to file a correction if needed. Until it appears, treat it as unpaid: an open balance on the client's account.

Do you store what I enter?

No. Everything is calculated in your browser. Nothing you type is sent to us.

Match every receipt, net of TDS, to its invoice.

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