Under the Goods and Services Tax (GST) regime in India, the Tax Deducted at Source (TDS) provisions are applicable to certain transactions. The deductor, usually the government or a government agency, is required to deduct TDS on payments made to the supplier of goods or services and deposit the same with the government. Here are some guidelines for deductions and deposits of TDS by Drawing and Disbursing Officers (DDOs) under GST law:
1. Registration: Every DDO who is required to deduct TDS under the GST regime needs to obtain a unique identification number (UIN) by registering on the GST portal.
2. Deduction of TDS: The DDO is required to deduct TDS at the rate of 2% on the payment made to the supplier of goods or services. This TDS amount is to be deducted at the time of credit of the amount to the supplier's account or at the time of payment, whichever is earlier.
3. Issue of TDS certificate: The DDO is required to issue a TDS certificate to the supplier within 5 days of depositing the TDS amount with the government.
4. Payment of TDS: The TDS amount deducted by the DDO needs to be deposited with the government within 10 days from the end of the month in which the deduction is made.
5. Filing of TDS return: The DDO is required to file a TDS return in Form GSTR-7 on a monthly basis, by the 10th of the following month.
6. Rectification of errors: In case of any errors in the TDS certificate or return, the DDO is required to rectify them by filing a revised TDS certificate or return.
7. Compliance with other provisions: The DDO is required to comply with other provisions of the GST law, such as registration, invoicing, and other compliance requirements, as applicable.
In summary, DDOs who are required to deduct TDS under the GST law need to register on the GST portal, deduct TDS at the prescribed rate, issue TDS certificate, deposit the TDS amount with the government, file TDS return, rectify errors, and comply with other provisions of the GST law.
TDS (Tax Deducted at Source) is not applicable under the GST law for all transactions. TDS is only applicable for specified transactions as per the provisions of the GST law. Some examples of such transactions include:
1. Payments made to contractors for works contracts: TDS at the rate of 2% is applicable on the payment made to the contractor for works contracts. This is applicable to both the central and state governments.
2. Payments made to non-resident suppliers: TDS at the rate of 2% is applicable on payments made to non-resident suppliers of goods or services.
3. Rent payments: TDS at the rate of 2% is applicable on rent payments made by individuals or HUFs (Hindu Undivided Families) if the annual rent exceeds Rs. 2.40 lakh.
4. Commission payments: TDS at the rate of 5% is applicable on commission payments made to agents or intermediaries.
It is important to note that TDS is not applicable for transactions between registered persons under the GST law, except for the transactions mentioned above.
Under the Goods and Services Tax (GST) regime, the government has introduced provisions for Tax Deducted at Source (TDS) on certain transactions. TDS is a mechanism for collecting tax at the source of income. The responsibility for deducting and depositing TDS under the GST law lies with the Drawing and Disbursing Officer (DDO), who is an officer of the government or a government agency responsible for making payments to suppliers of goods or services.
The DDO is required to deduct TDS at the prescribed rate and deposit it with the government within a specified time period. The TDS provisions are applicable for specified transactions under the GST law, such as payments made to contractors for works contracts, payments made to non-resident suppliers, rent payments, and commission payments.
The DDO is also required to issue a TDS certificate to the supplier within a specified time period. Failure to comply with the TDS provisions under the GST law can attract penalties and interest. Therefore, it is important for DDOs to understand the TDS provisions and comply with them to avoid any penalties. The GST law has provided detailed guidelines for deductions and deposits of TDS by DDOs to ensure smooth implementation of the TDS provisions.
Here are some frequently asked questions (FAQs) related to the guidelines for deductions and deposits of TDS by Drawing and Disbursing Officers (DDOs) under GST law:
A: A Drawing and Disbursing Officer (DDO) is an officer of the government or a government agency who is responsible for making payments to the suppliers of goods or services.
A: No, TDS is applicable under the GST law only for specified transactions. For example, TDS is applicable for payments made to contractors for works contracts, and for payments made to non-resident suppliers.
A: The rate of TDS under the GST law is 2% on the payment made to the supplier of goods or services.
A: The TDS amount deducted by the DDO needs to be deposited with the government within 10 days from the end of the month in which the deduction is made.
A: Non-compliance with the TDS provisions under the GST law can attract a penalty of up to Rs. 10,000, along with interest on the TDS amount that was not deposited.
A: Yes, the DDO is required to issue a TDS certificate to the supplier within 5 days of depositing the TDS amount with the government.
A: The TDS return is required to be filed in Form GSTR-7 on a monthly basis, by the 1
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