Entities that required to get themselves registered as TDS Deductor:
- A department or establishment of the Central Government or State Government
- Local Authority
- Governmental Agencies
When TDS is to be deducted & Rate of TDS:
A department or establishment of the Central Government or State Government, Local Authority & Governmental Agencies are required to deduct TDS at the rate of one percent (1%) for CGST and one percent (1%) for SGST from the payment made or credited to the supplier of Goods & Services or both, where total value of such supply under a contract, exceeds two lakh and fifty thousand rupees.
Value of the Supply for the purpose of deduction of TDS:
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.
Payment of Amount Deducted as Tax & Filling of Return:
| 1. | Due Date for Payment of Tax Deducted & Filling of Return: | 10th day of Succeeding Month. |
| 2. | Form in which Certificate is to be issued | Form GSTR-7A |
| 3. | Time Limit for issuing the Certificate | Certificate is required to be issued within 5 days of crediting the amount so deducted to the Government |
Issuance of Certificate by the TDS Deductor:
The deductor shall furnish to the deductee a certificate mentioning therein the contract value, rate of deduction, amount deducted, amount paid to the Government in Form GSTR-7A within 5 days of crediting the amount so deducted to the Government.
Check List for Registration of Govt. Department, Local Authorities & PSUs as TDS deductor under GST:
Documents:
- Copy of TAN Allotment Letter or Copy of PAN Card of Govt. Department, Local Authority & PSUs.
- Copy of DDO’s PAN Card.
- Copy of DDO’s Aadhar Card/Voter ID/DL/Passport etc.
Information:
- DDO’s Mobile Number (Will be verified through OTP)
- DDO’s Email Address (Will be verified through OTP)
- Landline No. of Govt. Department, Local Authority & PSUs.
FAQ’s on Registration of Govt. Department, Local Authorities & PSUs as TDS deductor under GST
Is Govt. department, Local Authorities & PSUs supplying goods or services and already registered as a taxpayer under GST, need separate registration as tax Deductor?
Yes, a Govt. department, Local Authorities & PSUs requires separate registration as TDS deductor
Is Govt. department, Local Authorities & PSUs only registered as a TDS deductor requires to charge any GST on its supplies?
No, the department is only liable to deduct TDS and deposit it with the Govt.
Where a department is registered as both as Tax-payer and as Tax deductor is he need to file separate returns for both the registrations ?
Yes, separate returns for both the registrations are required to be filed.
When any department does not hold any PAN than how can it apply for registration as TDS deductor?
The department may apply with TAN number also.