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.

[Himansu Sekhar]

For the time being there will be no TDs as sec. 51 has not been implemented by not 9/17 or by 1/17.

AI Summary

TDS on works contracts not required pending implementation and notification of deductor categories under GST. Section 51 of the GST law makes TDS obligations depend on specified deductor categories (government, local authorities, government agencies and notified persons) and contemplates withholding on payments to contractors above the threshold at prescribed rates; since the additional notified deductor category and implementation were not in force at the relevant time, TDS withholding under the GST regime was not operational.