ॐ असतो मा सद्गमय
No, tax deducted at source by the deductor is available to deductee as credit.
Therefore, the deductee will effectively pay tax at only 18% (17% by cash/input tax credit and 1% by utilization of TDS credit).
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTY AND OTHER AMOUNTS:FAQ NO. 45)
If the deductor fails to issue TDS Certificate within the time prescribed,
the deductor shall be liable to pay, by way of a late fee, a sum of one hundred rupees per day from the day after the expiry of the five day period until the failure is rectified, subject to a cap of ` 5,000/-
(ICI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTY AND OTHER AMOUNTS: FAQ NO. 44)
The following are the compliances to be adhered by the deductor and the due dates for the same:
| Payment of TDS | Issue of Certificate |
| The deductor is liable to pay the amount deducted from the supplier to the Government within 10 days of the subsequent month | The deductor is liable to pay the amount deducted from the supplier to the Government within 10 days of the subsequent month |
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS,INTEREST, PENALTY AND OTHER AMOUNTS: FAQ NO. 43)
The threshold limit for tax deduction at source is ` 2.5 Lakh. For the purpose of
computation of threshold limit, contract value needs to be considered and not the invoice value or payment amount. However, for the purpose of ascertaining the threshold limit, the value of supply shall be considered as the amount excluding taxes.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENT, INTEREST, PENALTY AND OTHER AMOUNTS: FAQ NO. 42)
Yes, the taxable person shall deduct the tax irrespective of whether GST is charged in the invoice or not.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTY AND OTHER AMOUNTS: FAQ NO. 41)
The Central Government or state Government may mandate the following person to deduct tax at source;
(a) A department or establishment of the Central or State Government, or
(b) Local authority, or
(c) Governmental agencies, or
(d) Such persons or category of persons as may be notified, by the Central or a State Government on the recommendations of the Council.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTY AND OTHER AMOUNTS: FAQ NO. 40)
The rate of TDS is 1% of the value of supply.
ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTY AND OTHER AMOUNTS: FAQ NO. 39)
Tax deduction at source (‘TDS’) is a mechanism wherein the recipient of goods or services or both will deduct out of the amount payable to the supplier, an amount at a percentage of value of supply and deposit the same to the account of the Government within the time prescribed.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTY AND OTHER AMOUNTS: FAQ NO. 38)
TDS, under section 51 (1) of the CGST Act, 2017 will apply to supplies made to such agencies as may be mandated by the Government for TDS. As of now, this section has not been notified and therefore TDS is not applicable on any supplies.
(FAQ 36: MINING)
Paragraph B of Part I of The First Schedule: Cooperative Society
| Slab | Rates of Tax |
| Up to Rs. 10000 | 10% |
| Above 10000 but not exceeding 20000 | 1000 + 20% of Amount exceeding Rs. 10000 |
| Above Rs. 20000 | Rs. 3000 +30% of Amount exceeding Rs. 20000 |
| Paragraph C- Firm | 30% |
| Paragraph D- Local Authority | 30% |
The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 of the Income-tax Act, shall, in the case of every Coperative Society/firm/local authority, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent of such income-tax:
Marginal Relief Provisions are similar to Individuals