Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 6-5-2017 Last Replied Date:- 6-5-2017 – Who are liable to deduct tax at source? Section 51 of the Central Goods and Services Tax Act, 2017 ( Act for short) provides the procedure to deduct tax at source. Section 51(1) provides who are liable to deduct tax at source. Section 51(1) provide that notwithstanding anything to the contrary contained in this Act, the Central Government may mandate- a department or 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 on the recommendations of the Council. to deduct tax at the rate of 1% from the payment made or credited to the supplier of taxable goods or services or both, where the total value of such supply under a contract, exceeds ₹ 2,50,000/-. According to this section the required persons need not deduct tax at source if the total value o
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application. Value of supply The explanation to Section 51(1) provides that for the purpose of deduction of tax specified above, the value of supply shall be taken as the amount excluding the central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice. Time limit to pay Section 51(2) provides that amount deducted as tax under Section 51 shall be paid to the Government by the deductor within 10 days after the end of the month in which such deduction is made. Payment of tax The deductor is to maintain electronic cash ledger and electronic liability register. The electronic cash ledger shall be maintained in Form GST PMT – 05 for the deductor to pay tax, interest, penalty, late fee or any other amount on the Common Portal for crediting the amount deposited. The deductor shall generate a challan in Form GST PMT – 06 on the Common Portal entering the details of the amount to be deposited by him towards tax, interest, penalty, fees or any other amount. The
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ecting bank and the same shall be indicated in the challan. On receipt of CIN from the authorized bank, the said amount shall be credited to the electronic cash ledger of the person on whose behalf the deposit has been made and the Common Portal shall available a receipt to this effect. Where the bank account of the person concerned, or the person making the deposit on his behalf but no Challan Identification Number is generated or generated but not communicated to the Common Portal the said person may represent electronically in Form GST PMT – 07 through the Common Portal to the Bank or electronic gateway through which the deposit was initiated. The amount deducted thus shall be paid by debiting the electronic cash ledger and crediting the electronic liability register. TDS certificate Section 51(3) provides that the deductor shall furnish to the deductee a certificate mentioning therein the contract value, rate of deduction, amount deducted, amount paid to the Government and such oth
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suppliers in Part C of Form GSTR – 2A on the Common Portal after the due date (10 days from the end of the month) of filing of Form GSTR – 07. Payment of interest Section 51(6) provides that if any deductor fails to pay to the Government the amount deducted as tax, he shall pay interest in accordance with the provisions of Section 50(1), in addition to the amount of tax deducted. The determination of the amount in default shall be made in the manner specified in section 73 or section 74. Refund Section 51(8) provides that the refund to the deductor or the deductee arising on account of excess or erroneous deduction shall be filed under Section 54. The refund shall be claimed by filing an application in Form GST RFD – 01 electronically through the Common Portal. The application shall be accompany by the required documentary evidences, as applicable to establish that the refund is due to the applicant. An acknowledgement in Form GST RFD – 02 shall be made available to the applicant thro
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for refund. Where upon examination of the application, the proper officer is satisfied that a refund is due and payable to the applicant, he shall make an order in Form GST RFD – 06, sanctioning the amount of refund to which the applicant is entitled, mentioning the amount, if any, refunded to him on a provisional basis, amount adjusted against any outstanding demand under the Act or under any existing law and the balance amount refundable. If the refund is delayed because of the reasons not on the part of the applicant, the interest shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration particulars and as specified in the application for refund. Cancellation of registration Where the proper officer is satisfied that a person to whom a certificate of registration in Form GST REG 06 has been issued is no longer liable to deduct tax at source under section 51 the said officer may cancel the registration and such cancellation shall be c
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