Following persons are required to deduct TDS :
Section 51(1) r.w. Notification No. 50/2018 - Central Tax dated September 13, 2018
(a) a department or establishment of the Central Government or State Government; or
(b) local authority; or
(c) Governmental agencies; or
(d) such persons or category of persons as may be notified by the Government on the recommendations of the Council
Persons notified under Section 51(1)(d):
(a) an authority or a board or any other body, -
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by any Government,
with fifty-one per cent. or more participation by way of equity or control, to carry out any function;
(b) Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860);
(c) public sector undertakings
When & from whom TDS is required to be deducted (deductee)?
Section 51(1)
Suppliers of taxable goods or services or both to the deductor(s), where the total value of such supply, under a contract, exceeds INR 2,50,000/-
Rate of TDS
Section 51(1)
TDS is to be deducted at the rate of 1% [i.e. 2% for CGST+SGST/UTGST or IGST] from the payment made or credited to the deductee
Value of supply
Explanation to Section 51(1)
For the purpose of TDS specified above, the value of supply shall be taken as the amount excluding CGST, CGST/UTGST, IGST and cess indicated in the invoice
Compulsory registration for TDS deductor
Section 24(vi)
TDS deductors, whether or not separately registered, are required to compulsorily register in GST irrespective of threshold limits
Form TDS deductor registration
Rule 12(1)
Form GST REG-07 - Registration started from September 18, 2017 (The Goods and Services Tax (GST) Council, at its 21st meeting in Hyderabad)
TDS applicants who do not have a PAN, can register on basis of TAN
Payment of TDS by deductor
Section 51(2)
The amount of TDS shall be paid to the Government by the deductor within 10 days after the end of the month in which such deduction is made
TDS Certificate to deductee
Section 51(2) and Section 51(3) r.w. Rule 66(3)
The deductor shall furnish to the deductee a certificate in Form GSTR-7A (made electronically available), within 5 days of crediting the amount so deducted to Government, mentioning therein:
• contract value,
• rate of deduction,
• amount deducted,
• amount paid to the Government
• Such other particulars in such manner as may be prescribed
ITC to deductee
Section 51(5)
The deductee shall claim credit, in his electronic cash ledger, of the tax deducted and reflected in the return of the deductor furnished under Section.
Interest / Late fee for non-compliance
or
Non-payment of TDS within time
Section 51(6)
Interest as per Section 50(1) [at 18% per annum] is payable in addition to the amount of tax deducted.
Failure to furnish TDS Certificate
Section 51(4)
Late fee of INR 1,000/- per day from the day after the expiry of five days period until the failure is rectified, subject to a maximum amount of INR 5,000/-
[i.e. INR 2,000/- per day subject to maximum of INR 10,000/- for CGST + SGST/UTGST
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Payment towards Annual Maintenance Contracts subject to TDS u/s 194C of Income Tax Act: Bombay HC [Read Judgment]
Read more at: http://www.taxscan.in/payment-annual-maintenance-contracts-subject-tds-194c-income-tax-act-bombay-hc/28371/
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MMRDA not liable to deduct TDS on Acquiring Land from Illegal Occupants: Bombay HC [Read Judgment]
Read more at: http://www.taxscan.in/mmrda-liable-deduct-tds-acquiring-land-illegal-occupants-bombay-hc/28349/
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CBIC Clarifies Issues in processing of Refund claims filed by UIN Entities [Read Circular]
Read more at: http://www.taxscan.in/cbic-clarifies-issues-processing-refund-claims-filed-uin-entities/28334/
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GSTN Alert: Taxpayers can Amend Registration for NRTP, OIDAR, TDS & TCS
Read more at: http://www.taxscan.in/gstn-alert-taxpayers-can-amend-registration-for-nrtp-oidar-tds-tcs/28375/
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Service Charges collected from Tenant is ‘House Property Income’ incidental to Rental Income: ITAT [Read Order]
Read more at: http://www.taxscan.in/service-charges-collected-tenant-house-property-income-incidental-rental-income-itat/28293/
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Proceedings of detention couldn’t be initiated for minor mistakes in generation of e-way bill
The CBIC has clarified that the proceedings of detention couldn’t be initiated under Section 129 of the CGST Act for minor mistakes in generation of e-way bill like spelling mistakes in the name of the consignor or the consignee, error in the pin-code, error in the address of the consignee, etc. In such cases, penalty of Rs. 1000 will be levied.
