TDS / TCS UNDER GST & UNDER INCOME TAX
TDS, TCS provisions under GST to come into effect from October 1
1. Deductor:
a) GST: i) Department of the Central Government or State Government ,(ii) Local authority, (iii) Governmental
agencies(iv) Other Notified persons.
b) Income Tax: Any person making specified payments mentioned under the Income Tax but if payment is made by an individual or HUF whose books are not required to be audited no TDS is to be deducted.
2. Deductee:
a) GST: The supplier of taxable goods or services or both
b) Income Tax : Recipient of payment.
3. Taxability arises on :
a) GST: TDS is required to be deducted if the total value of supply under a contract in respect of supply of taxable goods or services or both, exceeds Rs. 2,50,000/-
b) Income Tax : Depends upon nature of Expense for eg.
i) Rs.5,000 for income from interests other than those on securities (194A)
ii) ₹ 30,000 p.a for the technical/professional services (194J) etc.
4. Rate of Tax :
a) GST: Rate of such deduction is @ 2% [i.e. 1% each on CGST & SGST/UTGST component] for intra-State supply & @ 2% [as IGST] for inter-State supply
b) Income Tax: Depends upon nature of Expense for eg. 10% on the technical/professional services, @ 1% on Premium paid for any life insurance policy, etc.
5. Registration :
a) GST : Compulsory registration for the deductors of TDS, if already registered under GST , needs to be registered separately as a TDS deductor.
b) Income Tax: When the deduction liability arises, it is necessary to take the Registration.
6. Payment:
a) GST : Generate a challan in the portal at www.gst.gov.in and deposit the tax so deducted through e-payment mode before 10th on next month.
b) Income Tax: Generally 7th day of the next month online payment at www.tin.nsdl.com
7. Return :
a) GST: The filing the TDS Return in FORM GSTR-7 can be done both through the online mode.
b) Income Tax: The various types of returns are 26Q,24Q,27Q.
8. Credit:
a) GST: The amount deducted would be available in FORM GSTR 2A/4A of the registered deductee and the same would be credited in his electronic cash ledger.
b) Income Tax: The credit can be disclosed in Form 26AS
9. Certificate:
a) GST: The deductor shall furnish to the deductee a system-generated certificate in FORM GSTR 7A.
b) Income Tax: TDS certificates have to be generated from Dept website and issued by a person deducting TDS to the assessee from whose income TDS was deducted while making payment. Form 16, Form 16A, Form 16 B and Form 16 C are all TDS certificates.
10. Interest and late fees :
a) GST: Failure to issue certificate within 5 days of crediting the amount so deducted to the Government the deductor shall pay a late fee of Rs. 100/- per day under CGST Act & SGST/UTGST Act separately , subject to a maximum amount of Rs.5000/- each under CGST Act & SGST/UTGST Act.
b) Income Tax: Late fees needs to be paid of Rs.200 per Day subject to the amount of TDSI interest @1%,1.5% as applicable.
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