TDS is to be deducted if the total value of individual contract exceeds 2.5 lakhs at the rate of 2 percent on payments made to the supplier of taxable goods and/or services. No need of deduction of Tax is required when the location of supplier and place of supply is different from the State of the registration of the recipient.
TDS deducted should be deposited within 10 days from the end of the month in which tax is deducted.
2% TDS needs to be deducted on payments made to the supplier of taxable goods and/or services.
TDS return in form GSTR-7 should be filed within 10 days from the end of the month.
Deductee can claim refund as per the provisions of the GST Act.
TCS is to be collected by e-commerce operator on behalf of the supplier of goods, or services who makes supplies through operator’s online platform. TCS will be charged at percentage on the net taxable supplies.
E-Commerce platforms are liable to collect TCS. E-Commerce operators have to pay the consideration collected to the vendors after deducting the TCS amount and pay the net amount.
Below are the exceptions to the TCS provisions for the services provided by an e-commerce platform.
E-commerce operators should receive payment after deduction of TCS @ 1%.
TCS collected should be deposited within 10 days from the end of the month in which tax is collected.
TCS return in form GSTR-8 should be filed within 10 days from the end of the month.