TDS Deduction Applicability
TDS And TCS Extension is over. No more extension to TDS and TCS deductors. This is going to applicable from 01st October 2018. The government has issued notifications in this regard vide Notification no. 50/2018-Central Tax,dt. 13-09-2018.
All rules and regulations will be applicable to TDS deductors as per Section – 51 = Tax deduction at source. Further, the government included an additional class of taxpayers in addition to the previously included in section 51.
Therefore below the additional class of deductors are required to deduct 2% TDS from the supplier invoice value excluding CGST + SGST Amount.
Additional Class of Deductors
a) An authority or a board or any other body, set up by an Act of Parliament or a State Legislature; or established by any Government, with fifty-one percent. or more participation by way of equity or control, to carry out any function;
Inserted below provision vide notification no. 57/2018-Central Tax ,dt. 23-10-2018
Provided that with respect to persons specified under clause (a) of subsection (1) of section 51 of the Act, nothing in this notification shall apply to the authorities under the Ministry of Defence, other than the authorities specified in the Annexure – A and their offices, with effect from the 1 st day of October 2018.
(b) Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860);
However, the government notifies to exempt TDS deductions from PSU to PSU(Public sector undertakings). This update has reference to notification no. 61/2018 – Central Tax dt.05/11/2018. The said notification is applicable for the supply of goods or services or both. In other words, supplies from public sector undertaking to another public sector undertaking are exempted from TDS deduction. Similarly, this is applicable from 01/10/2018.
TCS Deduction Applicability
TCS deductions will be applicable to eCommerce operators from 01st October 2018. It will come into force as per recent notification no. 51/2018-Central Tax ,dt. 13-09-2018.
Tax Deduction Rate % –
As per latest CGST notification no.52/2018–Central Tax dt.20.09.2018, every electronic commerce operator shall collect an amount calculated at a rate of half per cent. of the net value of intra-State taxable supplies.
All rules and regulations for such collection will be applicable as per Section – 52 = Collection of tax at source
GST Updates : TDS and TCS Extension News
The government has released a press release today to extend further tax deduction at source (TDS) and collection of tax at source (TCS) till 30.09.2018.
Earlier Registration and operation of TDS / TCS provisions were extend-ed till 30.06.2018 which is expiring in two days time in this month.
Read more from the given press release.
TDS Related Short Links
You may keep visiting GST India News blog for the latest GST Updates on TDS. GST India news brings more on TDS Credit to the supplier and its related content at GST India News.
Read to know how the taxpayer can take ITC benefits under the GST system in India. Learn more with the GST ITC example.
Find out how much GST credit is available on Mobile phones and their recharges. Also, read about credit on GST on other accessories.
Section 41 describes the ITC claiming and provisional acceptance. Read more about CGST section 41 under the CGST Act