TaxTMI 
TaxTMI 
Tax Deduction at Source as per section 51 of Goods and Services Act, 2017 and procedure to be followed by Departments or establishments of Local Authority, State Government, Local Authority, Governmental agencies.
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....edure to be followed by Departments or establishments of Local Authority, State Government, Local Authority, Governmental agencies. Sir/Gentlemen/Madam The Maharashtra Goods and Services Tax Act, 2017, (hereinafter referred to as the "MGST Act") and the Central Goods and Services Tax Act, 2017, (hereinafter referred to as the "CGST Act") have come in to force with effect from 1st July 2017. The Goods and Services Tax Act envisages the tax on supply of goods and services or both. The provisions of clause (vi) of section 24 of the MGST/CGST Act, provides for compulsory registration in respect of persons who are required to deduct tax under section 51. Therefore, every Department or establishment of Central Government, State Government or l....
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....ther words the MGST or the COST or the tax paid under Integrated Goods and Services Tax Act, 2017 or for that matter the cess paid under the provisions of The Goods And Services Tax (Compensation to States) Act, 2017 needs to be excluded while calculation of limit of ₹ 2.5 Lakh. 5. 1% TDS each for MGST and CGST should be made when the supplier of the goods and services and the recipient of the services are located in the Maharashtra. However, if the recipient has its place of business (POB) registered in Maharashtra and supplier is situated in other State or Union Territory, this will be an interstate supply and deductor will be required to deduct 2% TDS (under IGST) if the contract is otherwise found eligible for TDS. 6. As provide....
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....ory for every Drawing and Disbursing Officer (DDO) in the state of Maharashtra. (b) For obtaining registration as deductor, an application in Form GST REG-07 will have to be filled appropriately and uploaded on the Common Electronic Portal of Goods and Services Network (GSTN) www.gst.gov.in. The applicant should have a valid PAN or TAN as also a valid email ID and valid mobile number. After following due process the applicant will be required to submit the application to the Common Electronic Portal. The application so submitted will be assigned to the proper officer. (c) The concerned officer will verify the correctness of the application and if found in order will approve the application and issue the registration number. Deductor can d....
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....rediting the amount to the Government. (5) Penal Provisions: (a) If deductor fails to deduct TDS as provided under section 51 (1) of MGST Act, or CGST Act, or deducted an amount which is less than the amount required to be deducted or fails to pay to the Government the amount deducted as tax, then deduct-or shall be liable to minimum penalty of ₹ 10000/- or an amount equal to the tax not deducted, short deducted or deducted and not paid to the Government. (b) In case TDS certificate is not issued within prescribed time, deductor would be liable to pay late fee of ₹ 100/- per day from the expiry of the 5th day till the TDS certificate is issued. This late fee would not be more than ₹ 5000/-. (6) Refund of TDS - (a) A....