TMI BlogGuidelines for Deductions and Deposits of TDS by the DDO under GST.X X X X Extracts X X X X X X X X Extracts X X X X ..... ubject section which provides for tax deduction at source was not notified to come into force with effect from 1 st July, 2017, the date from which GST was introduced. Government of Odisha has recently notified that these provisions shall come into force w.e.f. 1 st October, 2018; vide Finance Department Notification No. 29890-FlN-CT1-TAX-0043/2017 dated 18 th September, 2018. 3. In order to comply with the provisions of the said Act for TDS, the following steps are required to be taken:- A. Registration as Tax Deductors in the GST common portal B. Deduction of TDS amount as per the provisions from the bills to be paid to the suppliers/deductees C. Deposit the TDS amount in to appropriate government account(s) D. File Tax Returns for TDS within the prescribed time Iino it 4. As per Section 5 1 of the Act, the following entities are required to do TDS and thus are required to get them registered as Tax Deductors under Section 24 (vi) of the said Act: (i) Central and State Government Departments / Establishments (e.g. Departments ,Heads of Departments, Collectorates, other sub-ordinate / field offices etc.) (ii) Local Authority (e.g. Municipalit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stablishments relating to the frequency of deduction of TDS and the modalities for disbursement of payments to deductees / suppliers. a) Government entities drawing and disbursing by raising bills through the Treasury using IFMS, where the number of TDS deduction cases are not very high (e.g. Departments / Heads of Departments / Subordinate offices etc.) b) Government entities drawing and disbursement by issuing e-Cheques through IFMS, where the number of TDS deduction cases are considerably high (e.g. Works Divisions, Forest Divisions etc.) c) Government entities where drawal and disbursement is not made through IFMS and payment is made through Banks (e.g. OPEPA, NRHM etc.) In view of the above differences in nature of drawai and disbursement, the process for deduction of T DS and remittance has been distinctively prescribed for them as under: Deduction Deposit of TDS: a) Deduction and Deposit process for DDOs drawing from Treasuries through Bills: Individual Bill-wise Deduction and its Deposit of TDS will be made by the DDOs drawing their claims from Treasuries. DDOs will have to generate CPIN (Challan) from GST portal in respect of TDS deducted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nerated by the RBI and will be shared electronically with the GST Portal. This will get credited in the Electronic Cash Ledger of the concerned DDO / Tax Deductor in the GST Portal. This can be viewed and the details of CIN can be noted by the DDO anytime on GST portal using his Login credentials. (ix) The DDO should maintain a Register as per proforma given in Annexure A to keep record of all T DS deductions made by him during the month. This Record will be helpful at the time of filing Monthly Return (FORM GSTR-7) by the DIDO. The DDO may also make use of the offline utility available on the GST Portal this purpose. (x) The DDO shall generate T DS Certificate through the GST Portal in FORM GSTR-7A after filing of Monthly Return. b) Deduction and Deposit process for FA CAOs / Public Works Forest divisions and P.L. Administrators using e-Cheque facility of IFMS: Bunching of deductions and its deposit by the DDO DDOs who make large number of payments in a month may find it difficult to generate challan for obtaining the CPIN for individual Work/Supply Bill for remittance of TDS. Such DDOs may exercise the following option, wherein the DDO will have to d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority. In the Bill, the DDO will give reference of all the earlier paid bills from which 2% TDS was deducted and kept in the suspense head. The DDO may also attach a certified copy of the record maintained by him in this regard. (x) The payment authority will pass the bill by clearing the Suspense Head operated against that particular DDO after exercising necessary checks. (xi) For remittance of TDS using IFMS, DDO will have to mention the CPIN Number (as beneficiary's account number), RBI (as beneficiary) and the IFSC Code of RBI with the request to payment authority to make payment in favour of RBI. details of remittance Bank i.e. RBI and IFSC code will be auto-populated into the challan created from GST Portal. (xii) IFMS Odisha has also been customized to facilitate remittance of GST deducted from the Bill. From the DDO Interface of IFMS, he/she will select GST TDS from the list of Beneficiary Type available in the Beneficiary Master. This will enable IFMS to auto populate the IFS Code of RBI for facilitating NEFT of TDS to GST Account. (xiii) Subsequently, DDO will enter the CPIN Number generated from the GST Portal in respect of the TDS particular o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST) and the relevant component (e.g. Tax / Interest / Penalty / Fees, as the case may be) under each of the Major Head. (iii) While generating the C PIN, the DDO will have to select mode of payment as either (a) NEFT/RTGS or (b) OTC. In the OTC mode, the DDO will have to select the one of the authorised Banks where the payment will be deposited through OTC mode. (iv) In the Bill, a. the net amount payable to the Supplier / Deductee; and b. 2% as TDS (1% Odisha GST + 1% Central GST or 2% IGST) will be specified c. Deduction of T DS should not be in fraction of rupees and the calculated value should be next higher rupee. (v) In case of NEFT/RTGS mode, the DDO will select the remitting bank details from the available list in GST portal and generate the challan with the NEFT / RTGS mandate form. The challan along with the mandate form will have to be submitted at the remitting bank for transfer of the TDS amount to RBI, as in case of normal GST payment. (vi) In case of the OTC mode, the DDO will have to issue cheque in favour of one of the 25 authorized Banks. The Cheque may then be deposited along with the challan with any of branch of the authorized ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... select the Bank where the payment will be deposited through OTC mode. (vi) The DDO shall prepare the bill for the bunched TDS amount for payment through the concerned payment authority. In the Bill, the DDO will give reference of all the earlier paid bills from which 2% TDS was deducted and kept in the suspense account. The DDO may also attach a certified copy of the record maintained by him in this regard. (vii) The payment authority will pass the bill by debiting the Suspense account operated against that particular DDO after exercising necessary checks. (viii) In case of NEFT/RTGS mode, the DDO will select the remitting bank details from the available list in GST portal and generate the challan with the NEFT / RTGS mandate form. The challan along with the mandate form will have to be submitted at the remitting bank for transfer of the T DS amount to RBI, as in case of normal GST payment. (ix) In case of the OTC mode, the DDO will have to issue cheque in favour of one of the 25 authorized Banks. The Cheque may then be deposited along with the CPIN with any of branch of the authorized Bank so selected by the DDO. (x) Upon successful payment, a CIN will be ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
