TAX DEDUCTION AT SOURCE
Person liable to
deduct
Defaults
TDS certificates
& Return
Rate of TDS
Mechanism of
TDS
Remittance
Value of Supply
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
Tax not deducted
Consequence
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 filing of TDS
Returns
Late fee of ₹ 100/- per day
Subject to a maximum of ₹ 5000/-
COLLECTION OF TAX AT SOURCE
What is TCS?
Dealing with
Discrepancies
Matching
Concept
Person liable to
collect
Mechanism of
TCS
Filing of Returns
& Rectifications
Rate of TCS
Value of Supply
Remittance
TCS (Contd.)
PERSON LIABLE TO COLLECT TAX
Own,
operates
or
manages
ECommerce
operator
Facility or
platform
Digital or
electronic
TDS (Contd.)
VALUE OF
SUPPLY
=
NET VALUE
SUPPLIES
Value of
taxable
supplies
OF
-
TAXABLE
Value of return
of taxable
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
By the tax authorities
• Audit
• 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
PENALTY, FEE
TAX,
INTEREST,
Payment of
Tax
CGST
SGST/ UTGST
Taxes
By Cash & Credit
Ledger
IGST
Interest, Penalty,
Fees
Only Cash Ledger