TAX DEDUCTION AT SOURCE

Person liable to
deduct

Defaults Rate of TDS

TDS certificates Mechanism of Value of Supply

& Return TDS

Remittance Exemptions

Registration
TDS (Contd.)

PERSON LIABLE TO DEDUCT TAX

• Department or establishment of the Central or State
Government
• Local authority
• Governmental agencies
• Persons or category of persons as may be notified

RATE OF TDS – 1%

VALUE OF SUPPLY – On
Contracts for supply taxable
goods or services or both
exceeding ₹ 2,50,000
TDS (Contd.)

EXEMPTIONS
• Location of the supplier and the place of supply
• Different from that of the recipient

TN, TN, TN

TN, TN, KA

TN, KA, KA

(Location of Supplier, Place Supply, Location of Recipient)

TDS (Contd.)

REGISTRATION
• Compulsory registration
• No threshold limit
• PAN not Mandatory
• TAN obtained under the Income Tax Act, 1961 could be used
for GST registration

REMITTANCE – By 10th of Succeeding month

TDS (Contd.)

TDS CERTIFICATE
• Form GSTR–7A
• Within 5 days of crediting the amount to the Government
• Contents - Contract value, Rate of deduction, amount
deducted, amount paid to Government and such particulars
as may be prescribed in this behalf

TDS RETURN
• Form GSTR-7
• Within 10 days from end of the month
• TDS data made available to Deductee – Part C - Form GSTR 2A
• On including the TDS in GSTR 2 of Supplier – Credit allowed in
Electronic cash ledger – can be used for payment of tax or any
other liability
TDS (Contd.)

DEFAULTS - Consequences of not complying with TDS provisions

Event Consequence
Tax not deducted Interest @18% to be paid along with the
TDS amount
Tax deducted but
Else the amount shall be determined
not paid/ paid
and recovered as per the Law
after due date
TDS certificate not
issued or delayed Late fee of ₹ 100/- per day
Subject to a maximum of ₹ 5000/-
Late filing of TDS
Returns
COLLECTION OF TAX AT SOURCE

What is TCS?

Dealing with Person liable to

Discrepancies collect

Matching Mechanism of Rate of TCS

Concept TCS

Filing of Returns
Value of Supply
& Rectifications

Remittance
TCS (Contd.)

PERSON LIABLE TO COLLECT TAX

Own,
operates
or
manages

E-
Commerce
operator

Facility or Digital or
platform electronic
TDS (Contd.)
VALUE OF NET VALUE OF TAXABLE
SUPPLY = SUPPLIES

Value of Value of return

taxable - of taxable
supplies supplies

REGISTRATION – Mandatory – No threshold limit

RATE OF TCS – Not exceeding 1%
COLLECTION – During the month in which supply was made
REMITTANCE – By 10th of Succeeding month
TDS (Contd.)

FILING TCS RETURNS

• Form GSTR-8
• Contents
• Outward supplies of goods or services effected through it,
• Supplies of goods or services returned through it
• Amount collected by it as TCS during a month
• Monthly return - Within 10 days after the end of such month
• Annual return - Before the 31st December following the end
of such financial year
RECTIFICATION OF RETURN - Allowed only if other
than on
• Scrutiny
• Audit By the tax authorities
• Inspection
• Enforcement
TDS (Contd.)

MATCHING OF RETURNS & DISCREPANCIES THEREOF

 Supplies furnished by every operator

 Matched with the corresponding
 Outward supplies furnished by the concerned supplier

• Communication to both persons in the event of mismatch

• Addition to output tax liability, if Rectification of discrepancy not
carried out
• Interest payable from Date of due till Date of payment
PAYMENT OF TAX

• Payment under GST

• Person liable to pay
• Liability of GST
• Time of Payment
• Interest on Late payment

• Modes of Payment
• Payment Process
• Order of Payment of taxes
• E-Ledgers
PAYMENT OF TAX (Contd.)

PAYMENTS UNDER GST

• Taxes – CGST, SGST/UTGST, IGST
• TDS
• TCS
• Interest, Penalty, Fees and any other payment as may be
required
PERSON LIABLE TO PAY
• Supplier of goods or service or both
• Recipient of goods or service or both - Reverse charge
mechanism
• Any other Person

LIABILITY OF GST
• On SUPPLY of Goods or service or both
PAYMENT OF TAX (Contd.)

TIME OF PAYMENT
• On monthly basis – 20th of the succeeding month

INTEREST
• Late payment – Not exceeding 18%
• Undue or Excess ITC claim/ – Not exceeding 24%
Reduction in Output tax liability
MODES OF PAYMENT
• E-Payment - Internet Banking, Credit Card, Debit Card
• Real Time Gross Settlement
• National Electronic Fund Transfer
• Over the Counter Payment (In Authorized bank branches)
• Upto ₹ 10,000
• Per challan per tax period,
• By cash, cheque or demand draft
PAYMENT OF TAX (Contd.)

E-LEDGERS
• Electronic Cash Ledger
• Electronic Credit Ledger
• Electronic Liability Ledger
PAYMENT PROCESS
• E-Challan – GST Common Portal - CPIN
• Online / Over the counter payments
• Acceptance by the Authorised Bank – generation of CIN
• Amount reflected in Cash ledger
• Utilisation of cash & credit ledger for payment of taxes
ORDER OF PAYMENT OF TAXES
 Self-assessed tax and other dues - Previous tax periods
 Self-assessed tax and other dues - Current tax period
 Any other amount payable including the Demand
DISCHARGE OF TAX, INTEREST,
PENALTY, FEE

Payment of
Tax

CGST SGST/ UTGST IGST

Taxes Interest, Penalty,

Fees

By Cash & Credit

Only Cash Ledger
Ledger