Applicability of WCT TDS

[THYAGARAJAN KALYANASUNDARAM]

Dear expert,

As per my understanding sec 51 of cgst/sgst act, which is replacement of Tds on works contract?

If yes there are only 3 categories of person defined as 1. Central or state government. 2. Local authority 3. Government agencies. Whereas the 4th one will be notified by government on the recommendation by the council.

So, other than these person no need to deduct tds on the works contract?

Till 30th June 2017, our clients usually deduct tds on works contract @2% in case of civil nature and others @5% will be remitted to the respective authority. Whereas as per the GST the contract exceed rs. 2.5 lakhs and the tds shall deduct at 1% and remit to the government.

But now, not required to deduct since the 4th category of person not notified, am I correct sir?

Thanks in advance.

AI Summary

TDS Not Required on Works Contracts Under GST Due to Non-implementation of Section 51 of CGST/SGST Act. A participant inquired about the applicability of Tax Deducted at Source (TDS) on works contracts under the Goods and Services Tax (GST) regime, specifically referencing Section 51 of the CGST/SGST Act. The inquiry noted that TDS was previously deducted at varying rates depending on the nature of the contract but questioned if it was still required given that the fourth category of persons required to deduct TDS had not been notified. A response clarified that, as of the current status, TDS is not required because Section 51 has not been implemented.