Notified deductor has to deduct TDS at the rate of 1% (1% as per CGST Act & 1% as per SGST
Act. Therefore Total TDS deductible is 2%) from the payment made or credited
to the supplier, with effect from a notified date, if the total value of
supply excluding tax under a contract exceeds Rs.2,50,000. The supplier can
claim credit of such TDS. Notified deductor includes the following [Notification No.50/2018]:
a department or establishment of the Central Government or State
local authority; or
Governmental agencies; or
As per Notification No.50/2018:
an authority or a board or any other body, –
(i) set up
by an Act of Parliament or a State Legislature; or
established by any Government,
fifty-one percent or more participation by way of equity or control, to carry
out any function;
society established by the Central Government or the State
Government or a Local Authority under the Societies Registration Act, 1860
(21 of 1860);
public sector undertakings
v As per Notification
57/2018, this shall not apply
to the authorities under the Ministry of Defence, other than the authorities
specified in the Annexure-A and their offices.
v As per Notification 61/2018, this shall not apply to the supplies from a public sector
undertaking to another public sector undertaking, whether or not a distinct
v As per Notification 73/2018, this shall not apply to the supply between one person to
another persons specified above.
deduction shall not be made if the location of the supplier and the place of
supply is in a State or Union territory which is different from registration
deduction shall be paid within 10 days after the end of the month of deduction.
certificate shall be furnished to the deductee mentioning contract value,
rate of deduction, amount deducted, amount paid etc. within 5 days of
deductor fails to furnish certificate within prescribed time, he shall pay,
by way of a late fee, Rs.100 per day from the day after the expiry of such
five days till rectification of failure, subject to a maximum of Rs.5000.
or deductee can claim refund of TDS on account of excess or wrong deduction
as per section 54 except where deductee has already taken credit of such
supply received by a deductor from unregistered supplier, is exempted from the whole of the central tax leviable thereon u/s 9(4),
subject to the condition that the deductor is not liable to be registered
otherwise than u/s 24(vi) [Notification No.9/2017].
The provisions of this section shall come into force w.e.f.
01-Oct-18 [Notification No.50/2018]