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]:
department or establishment of the Central Government or State Government; or
As per Notification No.50/2018:
authority or a board or any other body, –
(i) set up by an Act
of Parliament or a State Legislature; or
(ii) established by
with fifty-one percent
or more participation by way of equity or control, to carry out any function;
established by the Central Government or the State Government or a Local
Authority under the Societies Registration Act, 1860 (21 of 1860);
As per Notification
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.
As per Notification 61/2018, this shall not apply to the supplies from a public sector
undertaking to another public sector undertaking, whether or not a distinct
As per Notification 73/2018, this shall not apply to the supply between one person to
another persons specified above.
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
Such deduction shall
be paid within 10 days after the end of the month of deduction.
A certificate of Tax
Deducted at Source shall be furnished to the deductee in such form and manner
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.
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].