Page 17 - Ch9_POT & TDS-TCS

12. Sec 52: Tax collected at source

CCP 09.12.22.00
Whether the rate of tax of 1% notified under section 52 is CGST or SGST or a combination of both CGST
and SGST? [Study Mat]
Answer :-
The rate of TCS as notified under CGST Act is payable under CGST and the equal rate of TCS is expected under

the SGST Act also, in effect aggregating to 1%.

CCP 09.12.23.00
Is every e-commerce operator required to collect tax on behalf of actual supplier? [Study Mat]

Answer :-
Ü Yes, every e-commerce operator is required to collect tax where consideration with respect to the supply is
being collected by the e-commerce operator.
Ü However, no TCS is required to be collected in the following cases:-
Ø on supply of services notified under section 9(5) of the CGST Act, 2017.

Ø on exempt supplies
Ø on supplies on which the recipient is required to pay tax on reverse charge basis.

CCP 09.12.24.00
State whether the provisions pertaining to tax collected at source under section 52 of CGST Act, will be
applicable,
a) If Fitan Ltd. sells watch on its own through its own website?
b) If ABC limited who is dealer of Royul brand sells watches through Slipkart, an electronic

commerce operator? [Study Mat]
Answer :-
Legal Provision:

Ü As per Section 52 of the CGST Act, Every ECO not being an agent, shall collect tax at source
Ø at 0.5% (i.e. 0.5 % CGST & SGST/UTGST each or 1% IGST)
Ø of the net value of taxable supplies made through it by other suppliers
Ø where the consideration for such supplies is to be collected by ECO.
Discussion & conclusion:

a Ü In the given case, Fitan Ltd. sells watch through its own website.
Ü Thus, TCS won't be applicable.
b Ü In the given case, ABC limited who is dealer of Royul brand sells watches through Slipkart.

Ü Thus, TCS will be applicable to Slipkart.

CCP 09.12.25.00
There is no onus of filing any monthly & annual statements by ECO. Examine the technical veracity of
the statement by explaining relevant provisions. [Study Mat]

Answer :-
Ü The given statement is invalid.
Ü An electronic statement has to be filed by the ECO containing details of the outward supplies of goods

and/ or services effected through it, including the supplies returned and the amount collected by it as TCS

CA VISHAL BHATTAD 09850850800 www.vsmartacademy.com V’Smart Academy 153