26 September 2018
1) We have a tripartite agreement with Southern Railway and State Bank of India for the transportation of Cement to various Railheads in the state. As per the tripartite agreement, Railway can do auto withdrawal of the amount from Bank once the Payment Advice/Railway Receipt is generated which is just before the wagon movement. For which, we have to maintain adequate balance in the Account which is earmarked for the above purpose.
As per the existing system, since we are following the auto withdrawal system of the Rail Freight by the Railway themselves in advance from Bank directly, we cannot deduct TDS on GST . Please note that most of the Rail Freight amounts will come above Rs. 2.50 lakhs.
In view of the above, kindly advise us on, how to comply the Section 51 (deduction of TDS) of the CGST Act 2017 in the above case.
Whether there is any exemption for the transaction between PSUs to PSU or PSU to Govt Depts?
Pls note that we are a Public Sector Undertaking and comes under the purview of Section 51 of the CGST Act.
26 September 2018
TDS is required to be deducted. Please talk to Railway Authorities and ask them to withdraw amount from the bank, after leaving the TDS portion.
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