With the help of this blog, you would be able to understand the crucial details on the deduction of TCS (tax collected at source), TDS (tax deducted at source), and GST (goods and services tax). But first, it is essential to carry out the GST registration process in India. This can be done online with the required documents. It is also mandatory to file a GST return in India if your business's turnover goes beyond the threshold limit stated in the GST law.
Now, let's go through the process of GST registration in
India for E-commerce operators and the forms needed by taxpayers who want to
collect/deduct TCS/TDS.
Who is
authorised to collect TCS (tax collected at source) under
the GST?
E-commerce aggregators are obliged
under the GST (goods and services tax) law for accumulating and depositing tax
at the rate of one per cent from each transaction. Any trader or dealer selling
goods and services online will get the payment once the one per cent tax is
deducted.
All the dealers and traders selling
goods and services online would require to get registered under the GST (goods
and services tax) regime even though their turnover is not more than Rs. 20
Lacs to claim the tax deduction by aggregators. To keep in mind, those service
suppliers who are not supplying via E-commerce operator liable to collect tax
at source and whose turnover is not more than Rs. 20 Lacs are exempted from
getting the registration done under the GST.
Who is
authorised to deduct TDS (tax deducted at source) under the GST (goods and
services tax)?
TDS is going to be deducted at the
rate of one per cent on the payments made at the suppliers of taxable goods and
services, where the value of supply (in totality) under personal contract is
more than Rs. 250000 Lacs.
The following entities or people
require to deduct TDS (tax deducted at source);
1.An establishment or department of
the state or central government.
2.Local authorities.
3.Government agencies.
4. A. a board or authority or any
other such bodies.
-Brought into place by an act of
parliament or state legislature or,
-Set up by any government with the
participation of 51% or more by way of equity or control.
B. The society set up by the state
government or central government, or any other local authority.
C. PSUs (public sector undertakings)
are sanctioned in the latest notification dated 13th of September, 2018.
Registration.
Any person who is needed to deduct
TDS (tax deducted at source) or collect TCS (tax collected at source) would
file an application for registration electronically, duly verified or signed by
Electronic verification code (EVC), with the help of form GST REG-07 on the
official portal; either directly or from a facilitation centre authorised by
the commissioner.
The sanctioned officer would grant
registration once the verification is done and allocate a certificate of
registration in form GST REG-06 within the three working days from the actual
date of applying.
Cancellation
of registration.
If the authorised person examines and
finds out via a proceeding that a person is no longer liable to collect TCS
(tax collected at source) or deduct TDS (tax deducted at source), then the
officer would revoke the registration and not be able to file GST return online. The cancellation has to
be conversed to the said person in form GST REG-08 electronically and won1.
The designated officer will follow
the same process for cancellation as for ordinary taxpayers.
Registration
for people who are supplying information online from outside of India.
What does it
mean by OIDAR (online information and database access or retrieval service)?
Simply, OIDAR (online information and
database access or retrieval service) means services whose delivery is
moderated by the internet. The supply is evidently automated, requiring the
minimum human intervention and impractical without the information technology.
This would
be applicable to whom?
Here are a few examples of electronic
services from the service tax list that would be taken as OIDAR;
-Advertisements on the internet.
-Offering cloud service such as
google drive.
-Provision of movies, e-books, music,
software and other intangibles through the internet such as Amazon Prime Video
and Netflix.
-Offering information or data,
recoverable or otherwise, to any person electronically via a computer network.
-Online gaming and streaming.
-Web-based services offering
financial and legal data, trade stats, social networking sites, matrimonial
services and so forth.
Some
non-OIDAR services.
- Supplying goods, where processing and ordering are conducted electronically.
- Supplying physical newspapers, books, or journals.
- Services offered by lawyers and financial consultants to clients via email.
- Booking tickets or services to entertainment events, car hire and accommodation.
- Professional and educational courses, where the content is offered by a teacher over the internet.
- Offline repair services of computer parts.
- Repairing of hardware, software over the internet from a remote location.
- Advertisements on posters, newspapers and TV.
- Internet access services and internet backbone services such as GTPL broadband.
