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. | Points | Provisions |
| 1 | Who is Liable to deduct TDS? |
Following are liable to deduct TDS under Sub Section 1 of Section 37 2. Local authority, or 3. Governmental agencies, or 4. Such persons or category of persons as may be notified, by the Central or a State Government on the recommendations of the Council. |
| 2 | Deductee | Deductee is the Supplier of taxable goods and/or services, notified by the Central or a State Government on the recommendations of the Council. |
| 3 | When to Deduct TDS | DS 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. |
| 4 | Rate Of TDS | 1% of payment made or credited to the Supplier of taxable goods and/or services. |
| 5 | Deposit of TDS | The 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. |
| 6 | Issue of TDS Certificate | within 5 days of crediting the amount so deducted to appropriate Government |
| 7 | Penalty for Non Furnishing TDS Certificate in Time | Rs. 100/- per day till the failure is rectified but subject to maximum late fee of Rs. 5,000/- |
| 8 | Claim 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. |
| 9 | If 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% |
| 10 | Excess 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: |
| 11 | No refund to deductor | No refund to deductor shall be granted if the amount deducted has been credited to the electronic cash ledger of the deductee. |
Author Bio
Point of taxation liability arise at the time of booking or payment. Is company registered by Indian Companies Act -(100% public shareholders) is liable to deduct TDS on supply.
What if any company is deducting TDS on gross amount (inclusive of IGST )??
Whether provision of this section applicable to all register person or only to those person which are specially pension in this section like govt. entity etc.
Please clarify this situation.
Whether any person has been notified under point 4 of section 37(1) above?