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Updates found with '10 july 2018'

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Updates found with '10 july 2018'

TDS @ 2% is required to be deducted on payment made to the supplier of taxable goods orservices of both where the value of such supply under a contract exceeds Rs. 2.5 Lakhs. Thus, theindividual supplies may be less than 2.5 Lakhs but if the contract value is more than Rs. 2.5 Lakhs– TDS @ 2% would be required to be deducted.For the purpose of the computation of the contract value, the following shall be excluded1. Central GST2. State GST3. Union Territory GST4. Integrated GST5. CessIt is important to note that these provisions have not yet been implemented and would beimplemented in future from date as notified by the Govt. The date for implementation of provisionsof GST has not yet been announced by the Govt.For example: Suppose a supplier makes a intra-supply i.e. supply within the same state worth Rs.10, 00, 000 to a recipient and CGST @ 9% and SGST @9% is required to be paid. The recipientwhile making the payment of Rs. 1, 000 to the supplier shall deduct 1% TDS under the CGST Actand 1% TDS under the SGST Act and therefore the total TDS Deducted would be 2% which in theabove case would be Rs. 20, 000.In case the above supplier makes an inter-state supply, TDS @2% i.e Rs. 20 would be required tobe deducted and deducted with the Govt.The value for the purpose of computing the amount of TDS shall not include 18% GST.The purpose of introduction of TDS on GST is only to enable the govt to have a trail oftransactions and to monitor and verify the complianceWho is required to deduct TDS on GSTAs per Notification No. 33/2017 Central Tax dated 15th Sept 2017, the following class of personsare required to deduct TDS on GST if the Contract Value is more than Rs. 2.5 Lakhs:-1. An authority or board or any other body with 51% or more participation by way of equity orcontrola. Set up by an Act of Parliament or a State Legislature; orb. Established by any Govt., 2. Society established by the Central Govt. or State Govt. or a Local Authority under the SocietyRegulations Act, 18603. Public Sector Undertakings
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