Is Government SEZ Authority required to deducts TDS
Query (Issue) Started By: – CASeetharaman KC Dated:- 22-10-2018 Last Reply Date:- 24-10-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Is a Government SEZ Authority formed by Act of parliament required to deduct TDS or would it be excluded under the proviso to Section 51 "Provided that no deduction shall be made if the location of the supplier and the place of supply is in a State or Union territory which is different from the State or as the case may be, Union territory of registration of the recipient."
\nReply By DR.MARIAPPAN GOVINDARAJAN:
\nThe Reply:
\nIn my view it is not required.
\nReply By CASeetharaman KC:
\nThe Reply:
\nSir I subscribe to your view and wish it is correct but there are some areas which may be looked at
\n1. CGST Act Section 51 read with Section 20 of IGST Act TDS would be applicable to both intra and inter state transactions
\n2. The proviso says the the no deduction is required if location<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n S is to be deducted as IGST Tax. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n me can be taken by the local supplier to pay CGST and SGST so even if the TDS is deducted the input can be availed by the supplier = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Is Government SEZ Authority required to deducts TDS Query (Issue) Started By: – CASeetharaman KC Dated:- 22-10-2018 Last Reply Date:- 24-10-2018 Goods and Services Tax – GSTGot 5 RepliesGSTIs a Government SEZ Authority formed by Act of parliament required to deduct TDS or would it be excluded under the proviso to Section 51 "Provided that … Continue reading “Is Government SEZ Authority required to deducts TDS”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-14588","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14588"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14588\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nThe fliers issued by the Board also clarifies the same and relevant portion is reproduced below:-
\n“Registration of TDS deductors: A TDS deductor has to compulsorily register without any threshold limit. The deductor has a privilege of obtaining registration under GST without having required to obtain PAN. He can obtain registration using his Tax Deduction and Collection Account Number (TAN) issued under the Income Tax Act,1961.
\n……..This can be explained in the following situations.
\na) Supplier, place of supply and recipient are in the same state. It would be intra-state supply and TDS (Central plus State tax) shall be deducted. It would be possible for the supplier (i.e. the deductee) to take credit of TDS in his electronic cash ledger.
\nb) Supplier as well as place of supply are in different states. In such cases, integrated tax would be levied. TDS to be deducted would be TDS (Integrated tax) and it would be possible for the supplier (i.e. the<\/p>\n
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\n2. The question which arises here is that by virtue of Section 7 (5) of the IGST Act all supplies to SEZ units are interstate transactions – Does this mean that the Location of the Supplier and the Place of Supply is in a different state from the state of registration of the recepient ?
\nRequest your thoughts on these two points which would be very helpful
\nReply By Alkesh Jani:
\nThe Reply:
\nSir,
\nI acknowledge your concern. In this regards, as far as my knowledge permits me, I have following comments to offer:-
\nIn terms of Section 51 of CGST Act, 2017, the notified person is required to obtain registration as TDS. Normally, the TDS registration will be based on TAN, although holding PAN. Some Govt. Department such as Railway and postal department are example of holding PAN as well as TAN. TDS is required to deduct Tax if the contract value is more than &#<\/p>\n
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