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TDS Under GST, Tax Deduction at Source under GST Regime

HIGHLIGHTS OF TDS PROVISIONS IN GST ACT

TDS Deductor will account for such TDS in the following ways:
1. Such deductors needs to get compulsorily registered.
2. They need to remit such TDS collected by the 10th day of the month succeeding the month in which TDS was collected and reported in GSTR 7.


3. The amount deposited as TDS will be reflected in the electronic cash ledger of the supplier.
4. They need to issue certificate of such TDS to the deductee within 5 days of deducting TDS failing which fees of Rs. 100 per day subject to maximum of Rs. 5000/- will be payable by such deductor.
The above provisions of TDS are tabulated below:

S.No.PointsProvisions
1Who is Liable to deduct TDS?Following are liable to deduct TDS under Sub Section 1 of Section 37
1. a department or establishment of the Central or State Government, or2. Local authority, or3. Governmental agencies, or4. Such persons or category of persons as may be notified, by the Central or a State Government on the recommendations of the Council.
2DeducteeDeductee is the Supplier of taxable goods and/or services, notified by the Central or a State Government on the recommendations of the Council.
3When to Deduct TDSDS will not be applicable where the total value of supply under a contract does not exceed Rs. 250,000/-.The value is excluding CGST, SGST, UGST, IGST and Cess Indicated in invoice.
4.Requirement of registration of the deductor?As per the provision of section 24(vi), persons who are required to deduct TDS under section 51 shall take registration whether such persons are separately registered under the GST Act or not.
5Rate Of TDS1% of payment made or credited to the Supplier of taxable goods and/or services.
6Deposit of TDSThe deductor shall deposit TDS within 10 days after the end of the month in which deduction is made.TDS shall be paid within 10 days from the end of the month in which tax is deducted.
7Issue of TDS Certificatewithin 5 days of crediting the amount so deducted to appropriate Government
8Penalty for Non Furnishing TDS Certificate in TimeRs. 100/- per day till the failure is rectified but subject to maximum late fee of Rs. 5,000/-
9Claim Tax credit by Deductee in his electronic cash ledger(1) Amount Tax Deducted and reflected in the return of the deductor filed under sub-section (5) of section 27, in the manner prescribed.
10If any deductor fails to pay to the credit of the appropriate Government the amount deducted as tax(Interest shall be payable as per provision of section 50 and such rate shall not exceed at the rate of 18%
11Excess or erroneous Deduction(1) Refund to the deductor or the deductee, as the case may be, arising on account of excess or erroneous deduction shall be dealt with in accordance with the provisions of section 38:
12No refund to deductorNo refund to deductor shall be granted if the amount deducted has been credited to the electronic cash ledger of the deductee.

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