TMI BlogGST PROVISIONS FOR TDS AND TCSX X X X Extracts X X X X X X X X Extracts X X X X ..... Sir As the provisions for TDS and TCS has not been enabled by the GSTIN, so, how can they purchase goods / consumes services from persons who had been already migrated from VAT/ Service Tax to GST regime. So how should they proceed ? - Reply By SHUBHAM SHARMA - The Reply = In the above post they meant by persons who were liable to deduct TDS under VAT Law. - Reply By Rajagopalan Ranganathan - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Reply = Sir, TDS is governed by Section 51 and TCS is governed by Section 52 pf CGST Act, 2017 . Both the sections are yet to be brought into force. Therefore GSTN has not enabled these provisions. As per Notification No. 1/2017-Central Tax dated 19.6.2017 Central Government has appointed the 22nd day of June, 2017, as the date on which the provisions of sections 1 , 2 , 3 , ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 , 5 , 10 , 22 , 23, 24 , 25 , 26 , 27 , 28 , 29, 30 , 139 , 146 and 164 of the said Act shall come into force. Notification No.9/2017-Central Tax dated 28.7.2017 the Central Government has appointed the 1st day of July, 2017, as the date on which the provisions of sections 6 to 9 , 11 to 21, 31 to 41 , 42 except the proviso to sub-section (9) of section 42 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 43 except the proviso to sub-section (9) of section 43 , 44 to 50 , 53 to 138 , 140 to 145, 147 to 163 , 165 to 174 of the said Act, shall come into force. Notification No. 9/2017-Central Tax (Rate) dated 28.6.2017 exempts intra-State supplies of goods or services or both received by a deductor under section 51 of the said Act , from any supplier, who is not registere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, from the whole of the central tax leviable thereon under sub-section (4) of section 9 of the said Act , subject to the condition that the deductor is not liable to be registered otherwise than under sub-clause (vi) of section 24 of the said Act . - Reply By SHUBHAM SHARMA - The Reply = Sir Let take the case of a State Government hospital who previously under the VAT regime purchases g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods / consumes services from registered dealers under VAT for self consumption and deduct TDS thereon. But under GST as the provisons for TDS has not been enabled yet, how should they proceed now? - Reply By Himansu Sekhar - The Reply = Section 51 has not been enacted means TDs is not applicable. Hospital will not deduct any TDs - Reply By SHUBHAM SHARMA - The Reply = Sir Can they dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct VAT ? - Reply By Rajagopalan Ranganathan - The Reply = Sir, Section 51 of CGST Act, 2017 stipulates that Notwithstanding anything to the contrary contained in this Act, the Government may mandate, (a) a department or establishment of the Central Government or State Government; or (b) local authority; or (c) Governmental agencies; or (d) such persons or category of person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as may be notified by the Government on the recommendations of the Council, (hereafter in this section referred to as the deductor ), to deduct tax at the rate of one per cent. from the payment made or credited to the supplier (hereafter in this section referred to as the deductee ) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... akh and fifty thousand rupees : Provided that 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. Explanation. For the purpose of deduction of tax specified above, the value of supply shall be taken as the amount excl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uding the central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice. If the hospital mentioned by you fall under any of the four categories mentioned above then they have to deduct tax at source, that too after the provision is brought into effect. Till then who ever supply goods or services or both they have to discharge GST as supplier. From 1.7.2017 no Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te Government can levy and collect VAT. - Reply By SHUBHAM SHARMA - The Reply = Sir Mean to say that till the time the GST provisons has not been enabled , the supplier providing goods and services to the hospital will discharge GST liability on their own treating it a B2C transaction and hospital will make payment to them of the whole invoice amount without deduction of any TDS. - Reply By ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SHUBHAM SHARMA - The Reply = And what are the consequences if the hospital had already deducted VAT of the suppliers and also paid the same to the VAT Department? - Reply By Himansu Sekhar - The Reply = The supplier will pay the entire tax. - Reply By Himansu Sekhar - The Reply = Take up the matter with the hospital authorities - Reply By Rajagopalan Ranganathan - The Reply = Sir, On or af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter 1.7.2017 if the hospital collects VAT it is without authority of law. Hence even if it is deposited with the Government the same is refundable to the person concerned. - GST PROVISIONS FOR TDS AND TCS - Query Started By: - SHUBHAM SHARMA Dated:- 26-8-2017 Goods and Services Tax - GST - Got 11 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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