386 October 20 To October 26, 2018 u Taxmann’s Corporate Professionals Today u Vol. 43 u^28
Introduction
- Under the GST, Tax deduction at source (TDS) is a mechanism
wherein certain amount is deducted by the recipient of supply
at the time of making payment or credit to the supplier, if the
total value of such supply under a contract exceeds ` 2,50,000
(excluding taxes). This is in addition to the obligation of contractee
or the contractor, as the case may be, to deduct tax at source
under Sec. 194C of the Income-tax Act, 1961. This mechanism will
enable the Government to track the transactions in the similar
manner as in case of Income-tax.
During the initial phase of GST regime, the mechanism was de-
ferred through various notifications. Now, these provisions will
be effective from 1-10-2018 vide Notification No. 50/2018-Central
Tax, dated 13th September 2018. - Provisions of TDS contained in section 51 of the GST
Act, read with Rule 66
2.1 Persons liable to deduct TDS :
(1) A department or establishment of the Central Government
or State Government; or
(2) Local authority; or
(3) Governmental agencies; or
(4) Such persons or category of persons as may be notified
by the Government on the recommendations of the
Council.
Accordingly, the Government vide Notification No. 50/2018-Central
Tax dated 13th September, 2018, has notified following persons as
the category of persons required to deduct TDS under the GST:
(a) An authority or a board or any other body, —
(i) Set-up by an Act of the Parliament or a State
Legislature; or
(ii) Established by any Government,
Critical issues emerging
from TDS under GST
RakEsh GaRG
Executive Director,
s.s. kothari mehta & Co.kamakshi khanDELWaL
senior manager,
s. s. kothari mehta & Co.