Tds under gst act
This query is : Resolved
23 March 2019
GST law has mandated following class of persons to deduct TDS while making payments to the supplier of goods or services:
1. A central or state government department or establishment.
2. Local Authority
3. Government agencies
4. Other persons, as may be notified
The above persons are required to deduct TDS at 2 % where the total value of such supply, under an individual contract, exceeds INR 2,50,000 (excluding the amount of GST).
This means, TDS would be deducted on the value exclusive of GST and no TDS would be deducted on the GST component.
TDS is not required to be deducted if the location of the supplier and the place of supply is in a State which is different from the State of registration of the recipient.
For example: Supplier as well as the place of supply are in State A and the recipient is in State B. The supply would be intra-State supply. In such case TDS would not be deducted.
• Registration as TDS deductor: A TDS deductor is required to register compulsorily without any threshold limit. The deductor has a privilege of obtaining registration under GST without requiring PAN. He can obtain registration using his Tax Deduction and Collection Account Number (TAN)issued under the Income Tax Act.
• Depositing TDS with the government: The deductor has to deposit the TDS to the government by 10th of succeeding month and file GSTR 7, based on which the supplier would be able to claim the credit of TDS.
• Issuing TDS certificate: The deductor is also required to issue the TDS certificate to the deductee in form GSTR-7A, this needs to be done within 5 days of remitting the TDS to the government.
How can deductee claim the benefit of TDS under GST?
Any amount deducted as TDS and reported in GSTR 7 will automatically reflect in the electronic cash ledger of the deductee. The supplier can take this amount as credit in his electronic cash register and use the same for payment of tax or any other liability.
Hope your query get resolved with above details
1. A central or state government department or establishment.
2. Local Authority
3. Government agencies
4. Other persons, as may be notified
The above persons are required to deduct TDS at 2 % where the total value of such supply, under an individual contract, exceeds INR 2,50,000 (excluding the amount of GST).
This means, TDS would be deducted on the value exclusive of GST and no TDS would be deducted on the GST component.
TDS is not required to be deducted if the location of the supplier and the place of supply is in a State which is different from the State of registration of the recipient.
For example: Supplier as well as the place of supply are in State A and the recipient is in State B. The supply would be intra-State supply. In such case TDS would not be deducted.
• Registration as TDS deductor: A TDS deductor is required to register compulsorily without any threshold limit. The deductor has a privilege of obtaining registration under GST without requiring PAN. He can obtain registration using his Tax Deduction and Collection Account Number (TAN)issued under the Income Tax Act.
• Depositing TDS with the government: The deductor has to deposit the TDS to the government by 10th of succeeding month and file GSTR 7, based on which the supplier would be able to claim the credit of TDS.
• Issuing TDS certificate: The deductor is also required to issue the TDS certificate to the deductee in form GSTR-7A, this needs to be done within 5 days of remitting the TDS to the government.
How can deductee claim the benefit of TDS under GST?
Any amount deducted as TDS and reported in GSTR 7 will automatically reflect in the electronic cash ledger of the deductee. The supplier can take this amount as credit in his electronic cash register and use the same for payment of tax or any other liability.
Hope your query get resolved with above details
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Tax on Deemed Capital Gain
- Scrutiny and reopening of past returns
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Type of Capital Gain
- Regarding ITR filing with more value than showing in AIS/TIS
- ASMT-10 received from A O
- Rental income of jointly held property
- Accounting with Claude
- Difff in ais receipts and gst turnover
- ITR-3 File/Error Found
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
