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Tds provisions under gst

CA Manikanta Raja (Deputy Manager (Finance)) (37 Points)

17 September 2018

DEAR EXPERTS

WHAT IS THE TIME OF DEDUCTION OF TDS UNDER SEC 51 OF CGST ACT?

SEC 51 (1) USES THE WORDS "FROM THE PAYMENT MADE OR CREDITED TO THE SUPPLIER". WHAT DOES CREDITED STANDS FOR HERE ?

ALSO , SINCE THERE IS NO MENTION OF PHRASE LIKE "WHICH EVER IS EARLIER" FOR ABOVE MENTIONED SCENARIOS , WHEN DEDUCTION SHOULD BE MADE?

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2 Replies

Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 17 September 2018

As per section 51 CGST Act :

to deduct tax at the rate of one per cent. from the PAYMENT made or credited to the supplier [hereafter in this section referred to as "the deductee"] of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees:

TDS is applicable only when the supplies are made to Govt. & as per section 51 cgst act only Govt is liable to deduct TDS when the contract value exceeds 2.5lac

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CA Manikanta Raja (Deputy Manager (Finance)) (37 Points)
Replied 17 September 2018

Dear Rohit,

My question is not about the apllicability of Sec 51 of CGST act, It is regarding time of deduction/payment and ambiguity in certain terms used in Sec 51. Please clarify me if possible.