GST in its last meeting decided to open the registrations for TDS/TCS from Sept 18, 2017. In this write-up, registration of TDS/TCS shall be discussed.
TDS (Tax deducted at source)
TDS means a specified percentage of tax to be deducted on payments made to the supplier of taxable goods or services or both, where the total value of such supply, under an individual contract, exceeds two lakh fifty thousand rupees.
TCS (Tax collected at source)
Every electronic commerce operator (not being an agent) is Tax collector under GST.
Rate of Tax
TDS- 1% from the payment made or credited to the supplier of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees.
TCS- Not exceeding 1%, as may be notified by the Government on the recommendations of the Council, of the net value of
taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator
Liable to deduct/collect tax
TDS- As per section 51 of CGST Act, 2017, following persons are eligible to deduct tax:
(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
TCS- As per section 52, only e- commerce operator (not being an agent) is eligible to collect tax under GST.
Following is the process of registration for TDS/TCS:
(1) Application to be filed– As per Rule 12(1) of CGST Rules, 2017, Any person required to deduct tax under section 51 or a person required to collect tax at source under section 52, shall electronically submit an application, duly signed or verified through electronic verification code, in FORM GST REG-07 for the grant of registration through the common portal, either directly or through a Facilitation Center notified by the Commissioner.
(2) Certificate to be issued– The proper officer may grant registration after due verification and issue a certificate of registration in FORM GST REG-06 within a period of three working days from the date of submission of the application.
(3) Registration to be cancelled– Where, upon an enquiry or pursuant to any other proceeding under the Act, the proper officer is satisfied that a person to whom a certificate of registration in FORM GST REG- 06 has been issued is no longer liable to deduct tax at source under section 51 or collect tax at source under section 52, the said officer may cancel the registration issued under sub- rule (2) and such cancellation shall be communicated to the said person electronically in FORM GST REG-08
As Per Section 24(vi)- persons who are required to deduct tax under section 51, whether or not separately registered under this Act
As per Section 24(x)- every electronic commerce operator
List of documents to be uploaded
Proof of Principal Place of Business:
(a) For Own premises – Any document in support of the ownership of the premises like latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
(b) For Rented or Leased premises – A copy of the valid Rent / Lease Agreement with any document in support of the ownership of the premises of the Lessor like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
(c) For premises not covered in (a) and (b) above – A copy of the Consent Letter with any document in support of the ownership of the premises of the Consenter like Municipal Khata copy or Electricity Bill copy. For shared properties also, the same documents may be uploaded.
(d) For rented/leased premises where the Rent/lease agreement is not available, an affidavit to that effect along with any document in support of the possession of the premises like copy of Electricity Bill.
(e) If the principal place of business is located in an Special Economic Zone or the applicant is an Special Economic Zone developer, necessary documents/certificates issued by Government of India are required to be uploaded.
Instructions for submission of application
1. Enter name of Tax Deductor /Tax Collector as recorded on Tax Deduction and Collection Account Number/ Permanent Account Number of the Business. Tax Deduction and Collection Account Number/Permanent Account Number shall be verified with Income Tax database.
2. Provide Email Id and Mobile Number of DDO (Drawing and Disbursing Officer) / Person responsible for deducting tax/collecting tax for verification and future communication which will be verified through One Time Passwords to be sent separately, before filling up of the application.
3. Person who is acting as DDO/ Person deducting/collecting tax can sign the application.
4. The application filed by undermentioned persons shall be signed digitally.
|Type of Applicant||Digital Signature required|
|Private Limited Company
Public Limited Company
Public Sector Undertaking
Limited Liability Partnership
Foreign Limited Liability Partnership
|Digital Signature Certificate(DSC) class 2 and above|
|Other than above||Digital Signature Certificate class 2 and above, e-Signature or any other mode as specified or as may be notified.|
5. All information relating to Permanent Account Number, Aadhaar, Director Identification Number, Challan Identification Number shall be validated online by the system and Acknowledgment Receipt Number will be generated after successful validation of all the filled information.
6. Status of the application filed online can be tracked on the Common portal.
7. No fee is payable for filing application for registration.
8. Authorised shall not be a minor.
Hope this information will help you in your Professional endeavors. For further assistance/query, feel free to write to us.
Author: C S Ekta Maheshwari is the Author of this article and is Company Secretary by profession. The Author can be reached at [email protected]
The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation.. It doesn’t constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information’s provided herein above.