Check Applicability of GST TDS
Know how to get credit of TDS on GST
Ensure to get certificate of TDS on GST
Tax Deducted at Source (TDS) under GST
The background of Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) in Goods and Services Tax (GST) goes to concept of TDS & TCS in Income Tax Act. This concept of TDS & TCS is introduced by government to track transactions & ultimately prevent tax evasion. TDS or TDS is an advance tax and is an early source of revenue for government.
Who is required to deduct TDS under Goods & Services Tax (GST)?
Liability to deduct TDS is limited to selected class of person or persons and its not all applicable on all entities.
Following are the entities liable to deduct TDS under GST:
- A department or establishment of Central Government or State Government, example Department of Health
- Local Authority, for example MCD
- Government Agencies
Such persons or categories as notified by the government, which as per latest notification are as follows as:
- 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 participation by way of 51% equity or control by the government.
- A society established by the Central or any State Government or a Local Authority registered under the Societies Registration Act, 1860.
- Public sector undertakings (PSUs)
What is rate of TDS under Goods & Services Tax (GST)?
In case of interstate supply rate of TDS under GST is 2% under head IGST
In case of intra-state supply i.e. within state TDS is deducted at the rate of 1% under head CGST & 1% under head SGST
When is TDS liable to be deducted under GST?
TDS is liable to be deducted when value of supply under a contract in respect of a supply exceeds Rs. 2,50,000/-. For determining value of supply for TDS under GST, taxes leviable under GST shall be excluded.
When is TDS under GST required to be deposited with government?
TDS is required to be deposited with government by 10th of next month in which TDS is liable to be deducted. Form GSTR7 is used to pay TDS under GST via online GST portal. For example, if TDS is deducted in on 1st of January, 2019, then due date of deposit same with government is 10th February, 2019.
Which returns are filed for TDS under GST?
GSTR 7 is used by deductor to file return of TDS under GST. Due date of filing return of TDS under GST in form GSTR 7 is 10th of next month. Form GSTR 7 consists of details pertaining to deductor and deductee, period for which return is filed, amount paid to deductee, amount of TDS, details of interest and late fee (if applicable) and refund claimed among other things.
How certificate of deduction for TDS under GST is issued?
TDS Certificate is issued by deductor (person liable to deduct and deposit tax) to deductee (supplier whose payment is deducted as a TDS & deposited with government to his credit) in Form 7A. Form 7A is issued through GST portal within 5 days of depositing tax.
Form 7A consists of details of deductee & deductee, contract value, amount paid, rate of deduction among other things.
Late fee is applicable for not furnishing TDS certificate in Form 7A at the rate of Rs. 100/- per day starting from the day after expiry of 5 days as above mentioned till the time failure continues, subject to a maximum of Rs. 5,000/.
What is late fee for default in furnishing return of TDS under GST?
Late fee at the rate of Rupees 100 per day subject to a maximum of Rupees 5000 is liable to be paid for default in furnishing TDS Return of any month calculated from the day immediately succeeding the due date. If TDS under GST is paid after due date of same, interest at the rate of 18% per annum is also applicable for the period under default.
Advantage & Benefits of Private Limited Company
Status of artificial judicial person
A private limited company is recognized by law as an artificial legal person which has the privileges, rights & obligations of its own. It can contract, sue or be sued
Separate legal entity distinct from its promoters
Private limited company is a
separate legal entity distinct from its promoters/members/shareholders & in case of
insolvency later are not personally liable
Enhanced borrowing capacity
Banks & other financial institution rely & put more trust with regard to capacity & creditworthiness of private limited company
Attractive to Investors
Private limited company is convenient to raise funds particularly by startups by issuing shares/securities to investors through private placement
It means that private limited company remains in existence even in case of death of all shareholders/members as the ownership of shares are inherited by legal heirs
Private limited company are subjected to strict compliance & Audit report is mandatory even in case of nil transaction
Reliable, reputation, brand value
Due to strict compliance, transparency & information in public domain, private limited company place reputation, brand value & reliability in the eyes of stakeholders
|Basis||Private Limited Company||Limited Liability Partnership||One Person Company||Partnership Firm||Sole Proprietorship|
|Suitable For||Start-ups||Professional firms||Individual promoters||Family businesses||Small Businesses|
|Investors||Attractive||Less Attractive||Not preferable||Unlikely||No way|
|Taxation Benefits||Certain benefits||Efficient||benefits||Lowest||Lowest|
How It Works
Package & Pricing
Private Limited Company
- MOA & AOA
- PAN & TAN
- DSC – 2
- DIN – 2
- SHARE CERTIFICATES
- FIRST BOARD RESOLUTION
GST , MSME & TM
- GST Invoice Format
- GST e-way bill Registration
- Free GST Consultancy
- MSME Registration
Startup Annual Compliance
- Financial Statement
- Audit Report
- GST Return
- ROC Annual Return
- ITR for 2 Promoters
- *Package subject to Turnover
ITR for small business
- Financial Statement
- Refund Tracking Status
- House Property Income Covered
- Capita Gain Income Covered
- Interest Income Covered
- *Package subject to Turnover