PPT: Tax Deduction at Source and Collection of Tax at Source | Taxation for CA Intermediate PDF Download

 Page 1


TDS and TCS 
under GST
Page 2


TDS and TCS 
under GST
SECTION 51:
TAX DEDUCTION AT SOURCE
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Page 3


TDS and TCS 
under GST
SECTION 51:
TAX DEDUCTION AT SOURCE
2
1) Notwithstanding anything to the contrary contained in 
this Act , the government may mandate:
a. a department or establishment of the Central 
Government or State Government; or
b. Local authority; or
c. Government agencies; or
d. Such persons or category of persons as may be 
notified by the government on the recommendation of 
the council,
to deduct tax at the rate of 1% from the payment made or 
credited to the supplier of taxable goods or services or 
both, where total value of such supply, under a contract, 
exceeds Rs. 2,50,000.
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Page 4


TDS and TCS 
under GST
SECTION 51:
TAX DEDUCTION AT SOURCE
2
1) Notwithstanding anything to the contrary contained in 
this Act , the government may mandate:
a. a department or establishment of the Central 
Government or State Government; or
b. Local authority; or
c. Government agencies; or
d. Such persons or category of persons as may be 
notified by the government on the recommendation of 
the council,
to deduct tax at the rate of 1% from the payment made or 
credited to the supplier of taxable goods or services or 
both, where total value of such supply, under a contract, 
exceeds Rs. 2,50,000.
3
In addition to persons notified to deduct tax at source under 
clause (a) to (c) of the abovementioned section, the 
government vide notification no. 50/2018- Central Tax 
(Rate) dated 13th September 2018 has notified the 
following persons who are liable to deduct tax at source 
under the said section:
a. an authority or a board or any other body, -
i. set up by an Act of Parliament or a State Legislature; 
or
ii.established by any Government, with fifty-one per cent 
or more participation by way of equity or control, to carry 
out any function;
b. Society established by the Central Government or the 
State Government or a Local Authority under the Societies 
Registration Act, 1860 (21 of 1860);
c. public sector undertakings.
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Page 5


TDS and TCS 
under GST
SECTION 51:
TAX DEDUCTION AT SOURCE
2
1) Notwithstanding anything to the contrary contained in 
this Act , the government may mandate:
a. a department or establishment of the Central 
Government or State Government; or
b. Local authority; or
c. Government agencies; or
d. Such persons or category of persons as may be 
notified by the government on the recommendation of 
the council,
to deduct tax at the rate of 1% from the payment made or 
credited to the supplier of taxable goods or services or 
both, where total value of such supply, under a contract, 
exceeds Rs. 2,50,000.
3
In addition to persons notified to deduct tax at source under 
clause (a) to (c) of the abovementioned section, the 
government vide notification no. 50/2018- Central Tax 
(Rate) dated 13th September 2018 has notified the 
following persons who are liable to deduct tax at source 
under the said section:
a. an authority or a board or any other body, -
i. set up by an Act of Parliament or a State Legislature; 
or
ii.established by any Government, with fifty-one per cent 
or more participation by way of equity or control, to carry 
out any function;
b. Society established by the Central Government or the 
State Government or a Local Authority under the Societies 
Registration Act, 1860 (21 of 1860);
c. public sector undertakings.
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Provided that no deduction shall be made if the location 
of the supplier and the place of supply is in a State or 
Union Territory which is different from the State or as the 
case maybe , Union territory of registration of the 
recipient. 
Explanation :- For the purpose of deduction of tax 
specified above, the value of supply shall be taken as 
the amount excluding the Central tax, State tax, Union 
Territory tax, integrated tax and cess indicated in the 
invoice.
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