TDS Provision as Per Section 37 Under GST Model Law/GST Act 2016

1) Following Persons required to Deduct TDS @ 1% from the Payment made or Credited to the Supplier of Goods or Services-
a) A department or establishment of the Central or State Government,
b) Local authority,
c) Governmental agencies,
d) Such persons or category of persons as may be notified, by the Central or a State Government on the recommendations of the Council.

2) TDS has to be deducted only if the Total Value of Supply under the Contract Exceeds RS 10 Lakh. It must be noted that Total Value of supply shall exclude the Tax Indicated in the Invoice.

3) TDS so deducted must be deposited with CG or SG Treasury within 10 days after the end of the month in which such deduction is made.

4) TDS Certificate must also be issued within 5 Days of the date of remittance of TDS to CG or SG Treasury

5) TDS Certificate must contain the contract value, rate of deduction, Amount deducted, Amount paid to the appropriate Government and Any other particulars as may be prescribed.

6) In Case TDS Certificate Not issued on time than a late fees of Rs 100 Per Day from 6th day has to be paid subject to Maximum of Rs 5000.

7) If Fails to Deposit the TDS on time than liable to penal interest mentioned U/S 36 of this Act.

8) TDS so Deducted shown in Electronic Cash Register of Deductee can be claimed as Credit.

9) It is possible to claim refund arising on account of excess or erroneous deduction, and this would be governed by the provisions of Section 38. Such refund may be claimed either by the Deductor or the Deductee, but not both. Further, no refund would be available to the Deductor once the amount deducted has been credited to the electronic cash ledger of the Deductee.

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Compiled By
CA JAIN ALOK
9899259011
NIRC Member