TDS is to be deducted from payments made to a supplier of any taxable goods or services or both If the total contract of such supply exceeds Rs. 2.5 lac.
For the purpose of deduction of TDS, the value of supply shall exclude the Central Tax, State Tax, Integrated Tax and Cess mentioned in the invoice.
The followings persons are liable to deduct TDS:
1. A department or establishment of the Central Government or State Government; or
2. Local authority; or
3. Governmental agencies; or
4. Such persons or category of persons as may be notified by the Government on the recommendations of the Council,
Presently TDS provision not applicable to companies which are registered under companies act., which is private and not government undertaking company.
The registration can be done by GST REG-07.
The deduction against intra- state supply will be CGST & SGST @ 1% each – to be deposited with the respective Governments Treasury.
The deduction against inter-state supply will be IGST @ 2%, to be deposited.
The deductor to generate a challan online in FORM GST PMT-06 on the Common Portal and make the payment to a Bank through e-payment, Net Banking/Debit-Credit card/NEFT/RTGS or on Bank Counter.
In case of default to pay the deducted TDS to the Government within 10 days after the end of the month in which such deduction is made, interest @18% shall be payable in addition to tax deducted.
The deductor is liable to pay a penalty of Rs. 10,000/- or an amount equivalent to the tax not deducted or short deducted or deducted but not paid to the Government, whichever is higher.
Monthly return in form GSTR-7 to be filed by deductors within 10 days after the end of such month.
The deductors shall furnish to the deductee TDS certificate in Form GSTR-7A, within 5 days of crediting the amount so deducted to the Government, mentioning therein the contract value, rate of deductions, amount deducted, amount paid to the Government and other related particulars.
If the deductor fails to furnish TDS certificate within 5 days, the dedcutor shall pay a late fee of Rs. 100 per day (The maximum amount of Late Fee payable is Rs. 5,000/-) from the day after the expiry of such five day period until the failure is rectified.
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