TAX DEDUCTION AT SOURCE UNDER GST
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 16-1-2018
Section 51 of the CGST Act is relevant in respect of tax deduction at source provisions under GST.
Tax deducted at source as provided in section 51of the GST Act is a mechanism to track the transaction of supply of goods and/or services by making the recipient of such supply to deduct a small percentage of amount to be paid to the supplier of such goods and/or services and deposit the same with the government. The supplier of such cases takes into account the amount so deducted and makes the balance payment of tax to the government.
When tax would be deducted at source
As per section 51 of the GST Act, the tax at sou
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be notified by the Central or State Governments on the recommendation of GST Council.
Deposit of TDS
The amount of tax deducted would be required to be deposited to the credit of appropriate Government(Central Government for CGST and IGST, State Government for SGST) account within a period of 10 days after the end of month in which such deduction was made.
Credit of TDS
The deductee (taxable person from whose payments tax has been deducted) will take the credit of TDS deducted from his payments on the basis of certificate to be issued by deductor.
The deductee will claim the credit in his electronic cash ledger, the claim of which will be matched with the return of the deductor filed for the said period.
TDS Certificate
The certific
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of following month. In case deductor fails to deposit the amount of tax deducted by this date, he will be liable to pay besides such tax to be deposited, an interest at the rate to be prescribed for the period starting from the due date of deposit till the final date of deposit of amount.
Refund of TDS
For any excess or erroneous deposit of TDS, refund can be sought by deductor or deductee under the relevant provisions of GST law. However, In case the amount of TDS deducted and deposited has been credited to the electronics cash ledger of deductee, no refund will be allowed to deductor.
Deferment of TDS provisions
The applicability of TDS provisions has been deferred for implementation till 31st March, 2018.
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