The Finance department, Jammu, and Kashmir has issued a circular laying down the norms for Deductions and Deposits of TDS by the DDOs under Goods and Services Tax Law.
The department have noticed instances that some DDOs are not following the provisions of TDS as envisaged under Goods & Services Law. Accordingly, the following comprehensive guidelines are issued for strict compliance by all the Government Departments of the Union Territory of Jammu & Kashmir.
Section 51 of the Jammu and Kashmir GST Act, 2017 provides for deduction of tax by the Government Agencies (Deductor) or any other person to be notified in this regard, from the payment made or credited to the supplier (Deductee) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees. The amount deducted as tax under this section shall be paid to the Government by the deductor within ten days after the end of the month in which such deduction is made along with a return in Form GSTR-7 giving the details of deductions and deductees.
In order to comply with the provisions of the said Act for the purpose of TDS, the following steps are required to be taken by the DDOs:
A. Registration as Tax Deductors in the GST common portal.
B. Deduction of TDS amount as per the provisions from the bills to be paid to the suppliers/deductees.
C. Deposit the TDS amount in to appropriate Government account(s).
D. File tax Returns for TDS within the prescribed time limit.
As per section 51 of the Act, the following entities are required to comply with the provisions of TDS and thus are required to register themselves as Tax Deductor under section 24 (vi) of the said Act:
(i) Central and State Government Departments Establishments (e.g. Departments, Heads of Departments, Collectorates, other sub-ordinate / field offices etc.)
(ii) Local Authority (e.g. Municipalities, Panchayati Raj Institutions etc.)
(iii) Government Agencies.
(iv) An Authority / Board / Any other Body set up by an Act of Parliament / State Legislature or established by any Government with fifty-one percent or more participation by way of equity or control to carry out a function.
(v) Society established by Central Government or State Government or at Local Authority under Societies Registration Act, 1860.
(vi) Public Sector Undertakings (Central and State).
The DDO or the Authorized Signatory is required to make an application online on GST Common Portal on behalf of the Tax Deductor.
After the application is successfully submitted by the applicant, the same would be processed by the respective jurisdictional tax officer. Once the application is approved, the DDO (or Authorized signatory) will receive the GST Number in the given email ID along with the initial password.
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