Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
Recovery of Shares
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
TDS and TCS Provisions – Recently, The Ministry of Finance, vide Notification No. 50/2018 and 51/2018-Central Tax dated 13 September 2018, stated that on upcoming 1st October provisions regarding the Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) under Section 51 and Section 52 respectively of the CGST Act will come into force.
As per section 51 of the CGST Act, it is mandatory to deduct TDS at the rate of 1% of the value of supply for certain specified entities which are closely concerned with the government at the time of making payment to the supplier in case of intra-state supply of goods or services value exceeding Rs. 2.5 Lakhs.
Above mentioned provision is the same under SGST, therefore, the cumulative deduction will be 2% of the value of the supply.
As per Section 52 of the CGST Act, consideration received by an e-commerce operator in relation to supply of goods or services is required to be deposited with the Government an amount equivalent to 1% of the net aggregate value of the supply.
SGST contains the same provision as mentioned above, under which the total deduction will be equivalent to 2% of the net aggregate value of the supply.
TDS provisions assist the government in monitoring the transactions involving substantial consideration and which helps in ensuring GST compliance therein. There will be a wider impact of TCS provisions on e-commerce operators whose turnover is less than Rs.20 lakhs operating on a collect model. Now they will have to compulsorily discharge the TCS obligations and seek registration under the CGST Act[1] with effect from 1st October 2018. As the other entities which do not fall under the threshold are not required to apply for GST registration thus provisions regarding TCS can be challenged on the ground of differential treatment in the writ courts.
Also, Read
Gold loans are among the most popular loan types, particularly in rural India. Millions of peop...
The Reserve Bank of India (RBI) has recently issued new guidelines aimed at reducing unfair cha...
Corporate tax plays an important role in selecting the ideal location for setting up a business...
The United Arab Emirates (UAE) is recognized as the top global destination for innovation and i...
Did you or anybody in your family invest in Axis Bank Limited shares during the 1990s or early...
Are you human?: 4 + 8 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
In this blog, we will cover all the relevant provisions relating to aggregate turnover Goods & Service Tax la...
17 Mar, 2023
The concept behind GST is one taxation system for the entire nation as a whole. GST can be imposed on the goods and...
03 Apr, 2021