GST – States – FIN-CT1-TAX-0045-2017-21985/F – Dated:- 22-7-2017 – GOVERNMENT OF ODISHA FINANCE DEPARTMENT Memo No. FIN-CT1-TAX-0045-2017-21985/F The 22nd July, 2017 To All Departments of Government/ All Heads of Department Sub: Works Contracts and Tax Deduction at Source (TDS) under GST. The Goods and Services Tax has come into force w.ef 1st July, 2017. Central Taxes like Central Excise Duty, Service Tax, Additional Duties of Excise, Additional Duties of Excise (Textile and Textile products), Special Duties of Customs etc. and State taxes like VAT, Entry Tax, CST, Entertainment Tax etc. are subsumed in GST. GST has two components; Central GST (CGST) is collected by the Centre and State GST (SGST) is collected by the State. Integrated GST
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rnment agencies; or (d) Such persons or category of persons as may be notified by the Government on the recommendations of Council, (hereafter in this section referred to as the deductor ), to deduct at the rate of one percent from the payment made or credited to the supplier (hereafter in this section referred to as the deductee ) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees: 3. The person in charge of making payment (DDO) is required to be registered under OGST Act or CGST Act. He is to apply in FORM GST REG-7 for registration through GSTN portal. The DDO is required to have Tax Deduction and Collection Account Number (TAN), e-mail ID and Mobile Nu
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stipulated date attracts interest @ 18% on the amount of tax deducted. 5. The TDS has been deferred by two months, but DDOs should be registered by 31st August 2017. The Departments are advised to instruct their DDOs to take registration by 31st August, 2017, The deductor may be instructed that if the invoice has been issued prior to 1st July, 2017 and payment is made after 1st July, 2017, no deduction under GST shall be made upto 31.08.2017. 6. Under GST, works contract is a Composite service, taxable at 18% (CGST 9% + SGST 9%). The works contractor will avail Input Tax Credit (ITC) on the inputs used for execution of works contract. For example, in case of a building contract, he will pay tax at the rate of 18%, but he Will avail of tax p
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