October 20 To October 26, 2018 u Taxmann’s Corporate Professionals Today u Vol. 43 u (^41399)
It has further been stated by AAR that the
small business exemption, provided under
section 22 is eligible to the co-owners sepa-
rately in the case of jointly owned property,
where rent is collected together, but divided
equally and transferred to the respective
co-owner. Further, engaging a co-owner to
collect and distribute rent among all the
owners for administrative convenience has no
implication on the business exemption under
Section 22 of the CGST Act, 2017.
Rate of collection of tax at source under
GST
What is the rate of Tax Deduction at Source
(TDS) applicable on different supplies?
T
he rate of tax deduction at source and
the type of tax that is required to be
deducted under Section 51 of the CGST Act,
2017, by the Govt. Departments/entities/
PSUs from the payments made to suppliers
of taxable goods or services or both depends
upon whether the supply is inter-State or
intra-State. The rate of TDS applicable in
both cases is tabulated as under:
Nature of Supply Name of TDS Rate of Tax
Location of the
Supplier & Place
of supply is in the
same State/UT with-
out any legislature
(Intra-State Supply)
CGST 1%
SGST/UTGST 1%
Location of the
Supplier & Place
of supply are in
the different States
(Inter-State Supply)
IGST 2%
Time of Deduction of tax at source
At what time should the e-commerce
operator collect TCS?
T
ax is required to be collected under Section
52 of the CGST Act, 2017, once supply
has been made through the e-commerce
operator and where the business model is
that the consideration is to be collected by the
e-commerce operator irrespective of the actual
collection of the consideration. For example,
if the supply has taken place through the
e-commerce operator on 30th October, 2018
but the consideration for the same has been
collected in the month of November, 2018,
then TCS for such supply has to be collected
and reported in the statement for the month
of October, 2018.
Similarly, in case the supply has taken place
in September, 2018 and payment is received
in October, 2018, TCS provisions will not be
applicable as the chargeable event for TCS
is supply which has already occurred in
September, 2018, i.e., prior to applicability
of TCS provisions from 01-10-2018.
Time limit for payment to supplier for
Input Tax Credit
Is there any time limit within which the
recipient of supply is liable to pay the
value of supply with taxes to the supplier
of services/goods to avail of the input
tax credit?
Y
es, in terms of second proviso to section
16(2) of the CGST Act, 2017, the time
limit prescribed is 180 days from the date
of issue of invoice by the supplier of goods
or services or both. If the recipient fails to
pay the value of supply (with tax) within
180 days, then Rule 37(1) of the CGST Rules,
2017, requires him to furnish the details
of such supply, the amount of value not
paid and the amount of input tax credit
availed proportionate to such amount not
paid to the supplier in FORM GSTR-2 for
the month immediately following the period
of 180 days from the date of the issue of
the invoice. Such input tax credit availed
by him shall be reversed and added to his
output tax liability in the month in which
such details are furnished. Currently GSTR-2
is not required to be filed and, accordingly,
such ITC reversal is required to be depicted
in Table 4, Sl. No. B (2) of FORM GSTR-3B.
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