►
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
►
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
person.
►
As per Notification 73/2018, this shall not apply to the supply between one person to
another persons specified above.
►
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.
►
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
as prescribed.
►
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.
►
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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