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*TDS Certificate to deductee*
Section 51(2) and Section 51(3) r.w. Rule 66(3)
The deductor shall furnish to the deductee a certificate in Form GSTR-7A (made electronically available), within 5 days of crediting the amount so deducted to Government, mentioning therein:
• contract value,
• rate of deduction,
• amount deducted,
• amount paid to the Government
• Such other particulars in such manner as may be prescribed
*Rate of TDS*
Section 51(1)
TDS is to be deducted at the rate of 1% [i.e. 2% for CGST+SGST/UTGST or IGST] from the payment made or credited to the deductee
*When & from whom TDS is required to be deducted (deductee)?*
Section 51(1)
Suppliers of taxable goods or services or both to the deductor(s), where the total value of such supply, under a contract, exceeds INR 2,50,000/-
*Following persons are required to deduct TDS* :
Section 51(1) r.w. Notification No. 50/2018 - Central Tax dated September 13, 2018
(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
Persons notified under Section 51(1)(d):
(a) an authority or a board or any other body, -
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by any Government,
with fifty-one per cent. or more participation by way of equity or control, to carry out any function;
(b) Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860);
(c) public sector undertakings
*Value of supply*
Explanation to Section 51(1)
For the purpose of TDS specified above, the value of supply shall be taken as the amount excluding CGST, CGST/UTGST, IGST and cess indicated in the invoice
*Compulsory registration for TDS deductor*
Section 24(vi)
TDS deductors, whether or not separately registered, are required to compulsorily register in GST irrespective of threshold limits
*Payment of TDS by deductor*
Section 51(2)
The amount of TDS shall be paid to the Government by the deductor within 10 days after the end of the month in which such deduction is made
*Form for TDS deductor registration*
Rule 12(1)
Form GST REG-07 - Registration started from September 18, 2017(The Goods and Services Tax (GST) Council, at its 21st meeting in Hyderabad)
TDS applicants who do not have a PAN, can register on basis of TAN
*Interest / Late fee for non-compliance*
*Non-payment of TDS within time*
Section 51(6)
Interest as per Section 50(1) [at 18% per annum] is payable in addition to the amount of tax deducted.
*Failure to furnish TDS Certificate*
Section 51(4)
Late fee of INR 1,000/- per day from the day after the expiry of five days period until the failure is rectified, subject to a maximum amount of INR 5,000/-
[i.e. INR 2,000/- per day subject to maximum of INR 10,000/- for CGST + SGST/UTGST |
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