TCS under GST
Umang Raj (Chartered Accountants ) (79 Points)
07 January 2019
If sec. 9(5) notified service supplier is registered, tcs would be applicable for e com. operator?
5 Replies
Ravi SADhiyan
(Practice)
(4510 Points)
Replied 07 January 2019
52. Collection of tax at source.
(1) Notwithstanding anything to the contrary contained in this Act, every electronic commerce operator (hereafter in this section referred to as the “operator”), not being an agent, shall collect an amount calculated at such rate not exceeding one per cent., as may be notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator
Explanation.–– For the purposes of this sub-section, the expression “net value of taxable supplies” shall mean the aggregate value of taxable supplies of goods or services or both, other than services notified under sub-section (5) of section 9, made during any month by all registered persons through the operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said month.
Umang Raj
(Chartered Accountants )
(79 Points)
Replied 07 January 2019
Please read this recent definition which creates this ambiguity-
The “net value of taxable supplies” means the
aggregate value of taxable supplies of goods or
services or both, other than the services on
which entire tax is payable by the e-commerce
operator, made during any month by a
registered supplier through such operator
reduced by the aggregate value of taxable
supplies returned to such supplier during the
said month.
The above definition is given by CBIC in recent FAQ according to which-
when 9 (5) service provider is registered, entire tax would be paid by service provider not E com operator. And accordingly E com operator would be covered under TCS liability.
The “net value of taxable supplies” means the
aggregate value of taxable supplies of goods or
services or both, other than the services on
which entire tax is payable by the e-commerce
operator, made during any month by a
registered supplier through such operator
reduced by the aggregate value of taxable
supplies returned to such supplier during the
said month.
The above definition is given by CBIC in recent FAQ according to which-
when 9 (5) service provider is registered, entire tax would be paid by service provider not E com operator. And accordingly E com operator would be covered under TCS liability.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 07 January 2019
Yes , TCS is applicable for E-commerce operator, means E-0perator is liable deduct TCs of supplier supplying on their behalf
Ravi SADhiyan
(Practice)
(4510 Points)
Replied 07 January 2019
| Originally posted by : Umang Raj | ||
 |
Please read this recent definition which creates this ambiguity-The “net value of taxable supplies” means the aggregate value of taxable supplies of goods or services or both, other than the services onwhich entire tax is payable by the e-commerce operator, made during any month by a registered supplier through such operator reduced by the aggregate value of taxable supplies returned to such supplier during the said month.The above definition is given by CBIC in recent FAQ according to which-when 9 (5) service provider is registered, entire tax would be paid by service provider not E com operator. And accordingly E com operator would be covered under TCS liability. |  |
9 (5) The Government may, on the recommendations of the Council, by notification, specify categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable for paying the tax in relation to the supply of such services:
Read with Both Section
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