►
Notified deductor has to deduct TDS at the rate of 1% (1% as per CGST Act & 1% as per SGST
Act. Therefore Total TDS deductible is 2%) from the payment made or credited
to the supplier, w.e.f.
01-Oct-18, if the total value of
supply excluding tax under a contract exceeds Rs.2,50,000. The supplier can
claim credit of such TDS. Notified deductor includes the following [Notification No.50/2018]:
a)
a department or establishment of the Central Government or State
Government; or
b)
local authority; or
c)
Governmental agencies; or
d)
As per Notification No.50/2018:
◆
an authority or a board or any other body, –
(i) set up
by an Act of Parliament or a State Legislature; or
(ii)
established by any Government,
with
fifty-one percent or more participation by way of equity or control, to carry
out any function;
◆
society established by the Central Government or the State
Government or a Local Authority under the Societies Registration Act, 1860
(21 of 1860);
◆
public sector undertakings
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As per Notification No. 57/2018, this shall not apply to the authorities under the Ministry
of Defence, other than the authorities specified in the Annexure-A and their
offices.
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As per Notification No. 61/2018, this shall not apply to the supplies from a public sector
undertaking to another public sector undertaking, whether or not a distinct
person.
►
As per Notification No. 73/2018, this shall not apply to the supply between one person to
another persons specified above.
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However
deduction shall not be made if the location of the supplier and the place of
supply is in a State or Union territory which is different from registration
of recipient.
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Such
deduction shall be paid within 10 days after the end of the month of deduction.
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A
certificate of Tax Deducted at Source shall be furnished to the deductee in
such form and manner as prescribed.
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Deductor
or deductee can claim refund of TDS on account of excess or wrong deduction
as per section 54 except where deductee has already taken credit of such
amount.
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Intra-State
supply received by a deductor from unregistered supplier, is exempted from the whole of the central tax leviable thereon u/s 9(4),
subject to the condition that the deductor is not liable to be registered
otherwise than u/s 24(vi) [Notification No.9/2017].
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