TMI BlogTDS Mechanism under GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees (excluding the amount of central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice). Thus, individual supplies may be less than ₹ 2, 50,000/-, but if contract value is more than ₹ 2, 50,000/-, TDS will have to be deducted. However, no deduction shall be made if the location of the supplier and the place of supply is in a State or Union territory which is different from the State, or as the case may be, Union territory of registration of the recipient. This can be explained in the following situations. a) Supplier, place of supply and recipient are in the same state. It would be intra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctor would be liable to pay interest if the tax deducted is not deposited within the prescribed time limit. TDS Certificate: A TDS certificate is required to be issued by deductor (the person who is deducting tax) in Form GSTR-7A to the deductee (the supplier from whose payment TDS is deducted), within 5 days of crediting the amount to the Government, failing which the deductor would be liable to pay a late fee of ₹ 100/- per day from the expiry of the 5th day till the certificate is issued. This late fee would not be more than ₹ 5000/-. For the purpose of deduction of tax specified above, the value of supply shall be taken as the amount excluding the central tax, State tax, Union territory tax, integrated tax and cess indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plying with TDS provisions: S/No. Event Consequence 1. TDS not deducted Interest to be paid along with the TDS amount; else the amount shall be determined and recovered as per the law. 2. TDS certificate not issued or delayed beyond the prescribed period of five days Late fee of ₹ 100/- per day subject to a maximum of ₹ 5000/- 3. TDS deducted but not paid to the government or paid later than 10th of the succeeding month Interest to be paid along with the TDS amount; else the amount shall be determined and recov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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