Tax Deduction at Source (TDS)

Authorities to deduct tax at source( TDS) - the Deductor

(a) A Department or Establishment of Central Government or State Government; or

(b) Local Authority; or

(c) Government Agencies; or

(d) Such persons or category as may be notified by the Government

  • No TDS if location of supplier and place of supply is in a State or UT which is different from the State or UT of registration of recipient.
  • To deduct tax at the rate of 1 % SGST + 1 % CGST from the payment made or credited to the suppliers (the Deductee) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees.

 1 % SGST + 1 % CGST = TOTAL TDS -- 2%

Time limit to furnish such certificate in GSTR-7A & penalty thereof: Refer [Section 51 (4)]

  • within 5 days of crediting the amount to the appropriate Government.

If failed to furnish, he shall be liable to pay a late fee, a sum of Rs. 100 / day from the day after the expiry of 5 day period until the failure is rectified.

  • Amount of late fee payable shall not exceed Rs. 5,000/-.

Claiming credit of TDS:

  • Amount of TDS to be reflected in return of deductor.
  • Deductee shall claim credit, in his electronic cash ledger, of the amount of TDS.

Interest liability on deductor:

  • If any deductor fails to pay amount of TDS, he shall be liable to pay:
  • Interest in accordance with the provisions of section 50 and
  • The amount of tax deducted.

Tax Collected at Source (TCS)

  • TCS stands for Tax Collected at source. In the GST regime, every e-commerce operator needs to collect 1% under CGST Act and % under SGST Act; In case of inter-state transactions, 2% (under IGST Act) on the net values of taxable supplies made through the e-commerce operator.
  • The Registration Application for Tax Collector can be filed by the applicant directly by themselves. In GST regime, the registration process is online and any person/entity wishing to register will have to access the GST system for the same.
  • Any person who wish to get registered as the Tax Collector needs to apply in the form prescribed.
  • You need t o register separately in each state and appoint a person in each state/ UT who will be liable to pay GST
  • The preconditions are: For Registration as Tax Collector:
  • Applicant has valid PAN.
  • Applicant must have a valid mobile number.
  • Applicant must have valid E-mail ID.
  • Applicant must have the prescribed documents an d information on all mandatory fields as required for registration.
  • Applicant must have a place of Business.
  • Applicant must have an authorized signatory with valid details.
  • GSTIN will be allocated once the application is processed & approved.
Circulars

Sr. no

Date of Issue

Circulars

1 25/07/2017