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Tuesday, July 2, 2019

Tax deducted at source (TDS) below goods and service Tax


1. What is TDS?
Tax deducted at source (TDS) is one in all the ways that to gather tax supported sure percentages on the amount collectable by the receiver on goods/services. The collected tax could be a revenue for the government.
2. Who can be liable to deduct TDS under GST law?
1.       A department or an establishment of the Central Government or State Government; or
2.       Local authority; or
3.       Governmental agencies; or
4.       Such persons or category of persons as may be notified by the Government.
As per the most recent Notification dated 13th Sep 2018, the following entities also need to deduct TDS-

1.                   An authority or a board or any other body which has been set up by Parliament or a State Legislature or by a government, with 51% equity ( control) owned by the government.
2.                   A society established by the Central or any State Government or a Local Authority and the society is registered under the Societies Registration Act, 1860.
1.                   3.Public sector undertakings.
3. Once can the liability to deduct TDS be attracted?
What is the rate of TDS?
TDS is to be deducted at the speed of two % on payments created to the provider of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds two lakh fifty thousand rupees.

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