Page 18 - Ch9_POT & TDS-TCS

during the month within 10 days after the end of each month in which supplies are made.
Ü Also, the ECO is also required to file an Annual Statement on or before 31st day of December following the

end of the financial year.
Ü However, The operator shall not be allowed to furnish a statement after the expiry of 3 years from the
due date of furnishing the said statement.
Ü The Commissioner has been empowered to extend the due date for furnishing of monthly and annual

statement by the person collecting tax at source.

13. Combined Questions on TDS & TCS

CCP 09.12.26.00
From the following information of independent cases, your expert advice, with appropriate reasoning,
is sought on the applicability of TDS/TCS provisions of the CGST Act, 2017. You shall also quantify the
amount of TDS/TCS, as the case be, if the same is applicable.
1) Top Fashions, a designer cloth dealer and registered in the State of West Bengal, effected supply
through 'QUICK DEAL', an electronic commerce operator. Net value of taxable intra-State supplies

effected for the month of October 20XX was ₹ 1,50,000.
2) M/s Super Builders, a registered supplier in Tamil Nadu, was awarded a works contract by
Government of Tamil Nadu amounting to ₹ 4,30,000. Of this, value of exempt supply was ₹ 1,00,000.

3) Tasty Caterers, a registered supplier of Kerala, provided catering services in Kochi, Kerala to Government
of Andhra Pradesh for its annual training camp held for its staff. Value of said services was ₹ 4,50,000.
Answer :
1) Ü As per Section 52 of the CGST Act, An electronic commerce operator (ECO) is required to

collect TCS - an amount @ 1% (CGST 0.5% and SGST @ 0.5%) of the net value of taxable
supplies made through it by other suppliers
Ü Thus, Amount of TCS:
= ₹ 1,50,000 x 0.5%
= ₹ 750 (CGST) & ₹ 750 (SGST)

2) Ü As per Section 51 of the CGST Act, A State Government is required to deduct tax from the
payment made to the supplier of taxable goods and/or services, where the total value of such
supply [excluding GST] under a contract, exceeds ₹ 2,50,000.
Ü TDS to be deducted in the given intra-State supply (since place of supply and location of

supplier is in Tamil Nadu) is as follows:
= (₹ 4,30,000 - ₹ 1,00,000) x 1%
= ₹ 3,300 (CGST) & ₹ 3,300 (SGST)

3) Ü As per proviso to Sec 51 of the CGST Act, Tax shall not be deducted if location of supplier &
place of supply is in a State/ UT which is different from the State/UT of registration of recipient.
Ü Since, in the given case, the location of supplier and place of supply are in the same State, i.e.,
Kerala and location of recipient is in Andhra Pradesh.
Ü Thus, Andhra Pradesh Government is not required to deduct TDS as the total value of supply
under the contract is more than ₹ 2,50,000.

Note:
In above question, it has been assumed that the value given is exclusive of GST, wherever applicable, since the

rate of tax is not given in the question.

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