The state government has notified the Tax Deduction at Source (TDS) & Tax collected at Source (TCS) provisions under Section 51 & 52 of HPGST ACT, 2017. The notified taxes will be implemented with effect from 01-10-2018.
Commissioner of State Taxes and Excise, Himachal Pradesh Rajeev Sharma told here today that under the TDS provisions specified entities are required to deduct TDS at the rate of 2 percent (1% SGST+1% CGST) for intra-state supplies or 2 percent IGST for Inter –state supplies from the payment made or the credited to the supplier of taxable goods or services or both, where the total value of such supply, under a contract, exceeds Rs 2.5 lakhs.
He said that the deductor under TDS provisions would be liable to deposit the payment of TDS by the 10th day of the next month.
Under the TCS provisions E- commerce Operators will now be required to collect 1 percent TCS (0.5% SGST+0.5% CGST) for intra –state supplies or 1 percent IGST for Inter –state supplies on the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator. The E-commerce Operators shall also have to get themselves registered in the state.
The Collector under TCS provision would be liable to make the payment of TCS by the 10 day of the next month.
The detailed guidelines for Deductions and Deposits of TDS by the DDO under GST have been issued by Government and manuals regarding registration as TDS & TCS may be downloaded from the official website of Excise & Taxation Department, H.P.
Sharma said that for further queries one may call at H.P Excise Taxation Department helpline 18001808087