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TDS applicability

Nidhi (Chief Accountant) (3150 Points)

03 August 2020

Who is liable to deduct TDS under GST?

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 03 August 2020

Following person are required to deduct TDS under GST :
 A department or an establishment of the Central Government or State
Government; or
 Local authority; or-
 Governmental agencies; or
 Such persons or category of persons as may be notified by the Government.
As per the latest Notification dated 13th September 2018, the following
entities also need to deduct TDS-
 An authority or a board or any other body which has been set up by Parliament
or a State Legislature or by a government, with 51% equity ( control) owned by
the government.
 A society established by the Central or any State Government or a Local
Authority and the society is registered under the Societies Registration Act,
1860.
 Public sector undertakings.

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Nidhi (Chief Accountant) (3150 Points)
Replied 04 August 2020

TDS deducted by Govt department ect. on all supply?..Goods services

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 04 August 2020

TDS is to be deducted on payments made to the supplier of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds 2,50,000.

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Nidhi (Chief Accountant) (3150 Points)
Replied 04 August 2020

TDS deducted @ 1% on amount.?

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 04 August 2020

No, rate of TCS is 1%
rate of TDS is 2%
TDS is deducted by government ect. at rate of 2% if contract value exceed 2,50,000/-

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Nidhi (Chief Accountant) (3150 Points)
Replied 04 August 2020

How I get refund of tds deducted?

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 04 August 2020

You can claim credit in your electronic cash ledger of this tax deducted TDS and use it for payments of other taxes or your other liability as you use cash balance of cash ledgers to setoff/pay liability.

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Vijayprakash P (1313 Points)
Replied 04 August 2020

Central Government or State Government or Local Authority or Government Agencies or other notified persons set up by an Act of Parliament or state legislature, public sector undertakings. The deductor is liable to deduct TDS from the payment made to the supplier in case total value of supply(under a contract)exceeds Rs.2,50,000.The rate of TDS can be maximum of 1%of each CGST/SGST.The deductor after collecting the tax as TDS is liable to deposit such amount with the Government by the 10th of next month in Form GSTR-07.If it is delayed the deductor must pay interest @ 18% per annum.The deducor within 5 days of depositing TDS with the government shall furnish aTDS Certificate to the deductee in form GSTR-7A mentioning 1)Contract value, 2)Rate of deduction, 3)Amount deducted 4) Amount paid to the appropriate Government. 5)Any other particulars as may be prescribed. If the deductor fails to do so, he shall be liable to pay Rs.100/day subject to the maximum of Rs 5000.

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debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 05 August 2020

Applicability of TDS Under GST

Recipients of goods or services also known as deductors who enter into a contract with a supplier for taxable goods or services of a value exceeding Rs 2.50 Lakhs are required to deduct TDS from the tax invoice of such suppliers.

This TDS is charged on the taxable amount of goods or services which excludes the GST component on such taxable goods or services.

In other words, where the individual supplies maybe less than Rs 2.50 Lakhs but where the taxable value of goods or services exceeds Rs 2.50 Lakhs, TDS would be deducted.

Thus, there are certain conditions that need to be fulfilled in order to deduct TDS from the tax invoice of the supplier of taxable goods and services. These are as follows.

Conditions

The aggregate value of taxable supply must exceed Rs 2.50 Lakhs under a single contract. This taxable value does not include CGST, SGST, IGST, UTGST and CESS applicable under GST.
In case, the recipient enters into a contract with the supplier for both taxable supply and exempted supply, TDS would be deducted only if the value of taxable supply in the contract exceeds Rs 2.50 Lakhs. This taxable value does not include Taxes and CESS applicable under GST.
Where the location of the supplier and the place of supply are within the same state or UT, it is the case of intra-state supply. TDS at the rate of 1% each under CGST and SGST/UTGST would be deducted, that is, total 2% (1%CGST and 1%SGST/UTGST) where the recipient or the deductor is registered in the same state or UT without legislature.
In cases where the location of the supplier is in State A and the place of supply is in State or UT B without legislature, it is the case of inter-state supply. TDS at the rate of 2% would be deducted under IGST. Provided the recipient or the deductor is registered in the state or UT B without legislature.

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