TDS under GST regime will be effective from 18.09.17

TDS under GST regime will be effective from 18.09.17

CGST Notification No. 33/2017 dated 15.09.2017

Notifying section 51 of the CGST Act, 2017 for TDS.

Under the GST regime, section 51 of the CGST Act,2017 prescribes the authority and procedure for Tax Deduction at Source. The section will be effective from 18th September,2017.The tax would be deducted @1% of the payment madeto the supplier (the deductee) of taxable goods orservices or both, where the total value of such supply,under a contract, exceeds two lakh fifty thousandrupees (excluding the amount of Central tax, State tax,Union Territory tax, Integrated tax and cess indicated inthe invoice). Thus, individual supplies may be less thanRs. 2,50,000/-, but if contract value is more than Rs.2,50,000/-, TDS will have to be deducted. However, nodeduction shall be made if the location of the supplierand the place of supply is in a State or Union territory,which is different from the State, or as the case may be,Union Territory of registration of the recipient.

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[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section(i)]

Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs Notification No. 33/2017 Central Tax

New Delhi, the 15th September, 2017

G.S.R. ..(E). In exercise of the powers conferred by sub-section (3) of section 1 of theCentral Goods and Services Tax Act, 2017 (12 of 2017), the Central Government herebyappoints the 18th day of September, 2017 as the date on which the provisions of sub-section(1) of section 51 of the said Act shall come into force with respect to persons specified underclauses (a) and (b) of sub-section (1) of section 51 of the said Act and the persons specifiedbelow under clause (d) of sub-section (1) of section 51 of the said Act, namely:-

(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 percent or more participation by way of equity or control, tocarry out any function;

(b) society established by the Central Government or the State Government or aLocal Authority under the Societies Registration Act, 1860 (21 of 1860);

(c) public sector undertakings:

Provided that the said persons shall be liable to deduct tax from the payment made orcredited to the supplier of taxable goods or services or both with effect from a date to benotified subsequently, on the recommendations of the Council, by the Central Government.

[F. No. 349/58/2017-GST(Pt.)]

(Dr.Sreeparvathy S.L.) Under Secretary to the Government of India