TDS SECTION 51 NOTIFICATION NO.57/2018-CENTRAL TAX, DATED

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1 ANNEXURE 1 TDS/ TCS

2 Error! No text of specified style in document. 1 TDS SECTION 51 NOTIFICATION NO.57/2018-CENTRAL TAX, DATED In notification No. 50/2018-Central Tax dated the 13th September, 2018 following be added Provided that with respect to persons specified under clause (a) of sub-section (1) of section 51 of the Act, nothing in this notification shall apply to the authorities under the Ministry of Defence, other than the authorities specified in the Annexure-A and their offices, with effect from the 1st day of October, 2018." Annexure A big list Section 51 made effective from Value of supply under contract exceeding 1% CGST +1% SGST or 2% IGST Tax deductor is recipient of supply TDS to be made when payment made or credited Deductor has to be compulsorily separately registered whether or not normally registered under this Act Deduction Mechanism: Deduct tax(transaction Basis) at the time of making payment Deposit with Government on monthly basis by 10 th Issue TDS certificate to deductee within 5 days of depositing TDS Furnish returns monthly GSTR -7 by 10 th TDS gets credited to cash ledger of deductee Defaults: TDS not deducted = TDS + interest TDS deducted but not paid = TDS + interest TDS certificate not issued =Late fee of 100 per day maximum 5,000 Late filling of TDS returns = Late fee of 100 per day maximum 5,000 This Late fee under CGST Act. Equal amount will be under SGST Act Sec 73 & 74 attracted To attract TDS who is supplier? GST normal registered = Yes GST composition dealer = Yes GST un-registered person = No. 9/2017 To attract TDS who is recipient? (a) A department or establishment of the Central Government or State Government; or (b) Local authority; or (c) Governmental agencies; or (d) Such persons or category of persons as may be notified by the Government on the recommendations of the Council, Provided that with respect to persons specified under clause (a) of sub-section (1) of section 51 of the Act, nothing in this notification shall apply to the authorities under the Ministry of Defence, other than the authorities specified in the Annexure-A and their offices, with effect from the 1st day of October, 2018." Annexure A big list Notified under (d) (a) an authority or a board or any other body,

3 2 Error! No text of specified style in document. (i)set up by an Act of Parliament or a State Legislature; or (ii)established by any Government, with fifty-one per cent or more participation by way of equity or control, to carry out any function; (b) Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (c) public sector undertakings.. Goods or Services or both 1 Nil rated No 2 Exempt under Sec 11/ Sec 5 No 3 Non- Taxable No 4 Schedule III transactions e.g. sale of Land etc No 5 Non- Exempt (Taxable) Yes 1 FCM Yes 2 RCM No 1 Taxable. Value 2,40, ,200 = 2,83,200 No 2 Taxable. Value 2,50,000 +GST No 3 Taxable. Value 2,50,001 + GST Yes 4 Taxable. Value including 12% is 2,60,000 No 5 Taxable 2,00,000 + Exempt 1,00,000 No 6 Taxable (3,00,000+GST) + Exempt 1,00,000 Yes 2% of 3,00,000 7 Purchase order is worth 5,00,000 out of that present invoice Yes is for 1,50,000 8 Purchase order is worth 2,00,000 out of that present invoice No is for 1,50, purchase orders are issued each of 1,00,000 No Whether TDS due on advances 1 Advance released for Supply of goods Yes 2 Advance released for Supply of services Yes 3 No TDS in following cases Where payment relates to tax invoice issued before Where advance was paid prior to

4 Error! No text of specified style in document. 3 TCS SECTION 52 Section 52 of CGST Act made effective from Rate 0.5% CGST + 0.5% SGST or 1% IGST Value = No value limit TCS deductor is Ecommerce Operator Registration = Compulsory. Even if registered separate registration for TCS compulsory. Registration for TCS would be required in each state as the obligation for collecting TCS would be there for every intra-state or inter-state supply Collection mechanism: Collect tax monthly = Net turnover = Aggregate Turnover - Supplies returned Deposit with Government by 10 th Furnish monthly statement GSTR -8 by 10 th Furnish Annual statement GSTR -9B by 31sd December following FY TCS amount credited to electronic cash ledger of the recipient Matching of GSTR 8 with GSTR -1 Mismatch communicate to both One of them rectified None of them rectified then supplier liable to pay GST with 18% Defaults TCS not collected = TCS + TCS collected but not paid= TCS + TCS GST 1 Goods ECO working as an agent No Yes 2 Goods ECO not working as an agent Yes Yes 3 Services other than 9(5) services working as an agent No Yes 4 Services other than 9(5) services not working as an agent Yes Yes 5 9(5) Services where ECO is deemed Supplier No Yes 6 9(5) Services where ECO is not a deemed Supplier Yes Yes. Goods or Services or both 1 Nil rated No 2 Exempt under Sec 11/ Sec 5 No 3 Non- Taxable No 4 Schedule III transactions e.g. Sale of Land etc No 5 Non- Exempt (Taxable) Yes 1 FCM Yes 2 RCM No To attract TCS who is supplier? GST normal registered = Yes GST composition dealer =? GST un-registered person =?

5 4 Error! No text of specified style in document. 1 Taxable 2,00,000 Yes 2 Exempt 1,00,000 No 6 Taxable (3,00,000+GST) + Exempt 1,00,000 Yes 1% of 3,00,000 Collect tax monthly = Net turnover = Aggregate Turnover - Supplies returned The value of net taxable supplies is to be calculated at GSTIN level Negative amount cannot be reported. There will be no impact in next tax period Oct 2018 Nov 2018 Dec 2018 A B C A B C A B C Sales Return Net TCS nil