{"id":1592,"date":"2019-09-03T11:10:41","date_gmt":"2019-09-03T05:40:41","guid":{"rendered":"https:\/\/aktassociates.com\/blog\/?p=1592"},"modified":"2019-09-07T12:24:35","modified_gmt":"2019-09-07T06:54:35","slug":"tds-under-gst","status":"publish","type":"post","link":"https:\/\/aktassociates.com\/blog\/tds-under-gst\/","title":{"rendered":"TDS under GST"},"content":{"rendered":"

In this article, we will understand each concept of TDS under GST law. Most of the persons get confused between TDS under income tax act and TDS under the GST Act. Let me first clarify that the TDS under Income Tax Act, 1961 is totally different from TDS under the GST Act.<\/span><\/p>\n

TDS means Tax deduction at the source which is defined under section 51 of CGST Act, 2017. As the name suggests, the deduction of tax from the source.<\/span><\/p>\n

\"TDS<\/p>\n

Whether in the Income-tax Act or under the GST Act, the objective of the government to introduce the TDS is to take control over the transactions i.e. to capture the transaction.<\/span><\/p>\n

Before taking the concept of TDS under the GST Act, let’s just understand the meaning of TDS with an example:<\/span><\/p>\n

If Mr. A is supplying goods to Mr. B of Rs. 50,000 then Mr. B shall deduct the TDS on the consideration value i.e. on 50,0000 and paid the rest of the amount to Mr. A and the TDS amount to Government.<\/span><\/p>\n

Now let’s take another example\u00a0<\/strong><\/p>\n

Mr. A is giving professional services to Indian Oil Corporation Limited (IOCL). The consideration has been decided on Rs. 3,50,000. In this case, IOCL shall deduct the TDS<\/a> under section 194J in Income tax act and section 51 in CGST Act, 2017.<\/span><\/p>\n

I know some of you get more confused with the above example but at the end of this article, you will be able to understand it.\u00a0<\/span><\/p>\n

In this example, I have intentionally taken the recipient name as IOCL because it\u2019s a PSU and as per section 51, TDS provision shall apply only when the supply of goods or services are made to any of the following:<\/span><\/p>\n

    \n
  1. Department or establishment of Central or state government<\/span><\/li>\n
  2. Government Agencies<\/span><\/li>\n
  3. Local Authority<\/span><\/li>\n
  4. Society established by the Central Government or the State Government or a Local Authority<\/span><\/li>\n<\/ol>\n
    \n
    \n

    In this article, we will discuss about...<\/p>\nToggle<\/span><\/path><\/svg><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n