OVERVIEW OF PROVISIONS RELATING TO TAX DEDUCTED AT SOURCE UNDER GST
TDS UNDER GST COMES INTO FORCE FROM 1ST OCTOBER, 2018
♦ Section 51 governing tax deduction at source has come into force w.e.f 1st October, 2018.
♦ All the DDOs who are required to make payment to suppliers against procurement of taxable goods /services or both above Rs. 2.5 lac (two lac fifty thousand) under a single contract shall obtain registration as a Tax Deductor on or before making such payment.
WHO IS A TAX DEDUCTOR?
UNDER SECTION 51 OF THE GST ACT, 2017 THE FOLLOWING CLASSES OF PERSONS ARE TAX DEDUCTOR
A. A department or Establishment of the Central or State Government
B. Local Authority
C. Government Agencies
D. (D)(a)An Authority or a Board or any other body–
(i) set up by an Act of Parliament or a State Legislature
E. (ii)Established by any Government, with fifty-one percent or more participation by way of equity or control, to carry out any function
(b)Society established by the Central or the State Government or a Local Authority under Societies Registration Act,1860(21 of 1860)
(c) Public sector undertakings
DUTIES OF A DDO
1. To check if deduction is required to be made
2. To obtain registration
3. To make payment within 10th day of the subsequent month of deduction
4. To submit return within 10th day of the subsequent month of deduction
First duty of a TAX DEDUCTOR
To obtain online registration at www.gst.gov.in
REGISTRATION PROCEDURE OF TAX DEDUCTOR
A. Under Section 24(1)(vi) of GST Act:
Any person liable for deduction of tax at source u/s 51 is liable for registration under GST as a TAX DEDUCTOR
B. U/R 12 Tax Deductor shall submit an online application, in FORM GST REG-07 for grant of registration through the GST Portal www.gst.gov.in
C. The application form submitted for registration shall be signed electronically using Class 2 and above DSC (Digital Signature Certificate) or Aadhar based e- Signature or EVC.
CHECK LIST FOR OBTAINING REGISTRATION
1. TAN (Tax Deduction and Collection Account Number) issued under the Income Tax Act, 1961.
2. PAN of the office, only if the office is also a business entity e.g. ASTC, APDCL, etc. (Only in case of DDOs of business entity).
3. Office E-mail, landline and/or Mobile number of office ( If no land line, not required). DOB, residential address, E-mail & Mobile no of the DDO / Authorised Signatory.
4. PAN / Aadhaar No of DDO PAN/Aadhaar No of the Authorised Signatory DIN (Director Identification No) if Deductor is a Company.
5. ♦ Photo of the DDO/Authorised Signatory. ( Photo can be taken instantly via webcam).
♦ Land document of the premises such as Electricity Bill, Telephone Bill, Rent receipt etc.
6. ♦ Class 2 or above DSC (Digital Signature Certificate) (mandatory for Company)
♦ Aadhaar based e-Signature
♦ EVC (Electronic verification code) through mobile OTP.
Essential documents required for Registration
♦ A Tax Deduction and Collection Account Number (TAN) issued under Income Tax Act, 1961.
♦ A Digital Signature Certificate (DSC) for signing the online application electronically or Aadhaar based e-signature or EVC. But DSC is mandatory for Company.
♦ Office email id and Office mobile/phone number for electronic verification.
♦ Proof of address of the Office (electricity bill, Municipality receipt etc.).
♦ Photos of the DDO & the Authorised Signatory.
HOW TO FILL UP APPLICATION FOR REGISTRATION IN FORM GST REG-07 PART-A
Filing TDS Registration Application
In Part-A of the application form, the following needs to be filled up :
i. Legal Name of the Tax Deductor as per TAN e.g., COMMISSIONER OF TAXES,ASSAM
i. PAN : To enter the PAN of the office, if the office is also a business entity e.g. ASTC, APDCL.
ii. TAN : TAN (Tax Deduction and Collection Account Number) issued under the Income Tax Act, 1961 e.g. SHLC00672A
iii. Email Address : To enter the email id of the office. e.g. firstname.lastname@example.org
iv. Mobile number : To enter the mobile number e.g. 9435556006.
Once Part-A is filled up, e-mail OTP & mobile OTP will be sent before filling Part-B.