TDS - SECTION 194-C 194-D 194- H

RATE OF TDS IS APPLICABLE OF F.Y.21-22 AND A.Y. 22-23 

TDS

Section 194-C  TDS on payments to contractors

Single payments >30,000/- TDS rates 1% in case of individual/HUF and 2% in case of company.

Aggregate payments> 1, 00,000/- P.A.

Notes :-

1.Carriage of goods and passengers other than by railways ( TDS is not applicable on payments to contractors engaged in plying , hiring, or leasing of goods carriages, where such contractor owns 10 or less goods carriages during the financial years. Section 44AE)

2. Manufacturing contracts TDS is not deducted at source if the contractor himself uses his own raw material. Then it is not a work contract at all. So, no TDS u/s 194C.

3. Manufacturing contracts If the contractee supplies raw materials, then tax is deducted at source on the Gross amounts after deducting value of raw material.

  

Examples :-

 One persons ( deductors ) …….>  Payments for Xerox ………..>contractors

                                 bills 20000, 25000,35000,10000=90000 <…….

TDS to be deducted in only one times 35000@1%=350

                             bills 20000, 25000,35000,40000=120000<……..

TDS to be deducted 35000@1%=350 ( the bill is exceed 30000 then 1% TDS to be deducted ) & (total bills amounts per annum is exceed 100000/- then TDS to be deducted 1%) bills 40000 is exceed 30000 then how much TDS to be deducted and how actual amounts to be paid after TDS deducted.

120000@1%=1200-350=850 and tds to deducted on 40000-850= 39150 to be paid by the deductors to contractors…

Bill wise TDS to be deducted :-

        20000-0=20000, 25000-0=25000, 35000-350=34650,40000-850=39150

                    =total bill amounts after TDS =118800.

       120000@1%=1200, 120000-1200=118800.

 

Section 194-D insurance commission

Insurance company………….>paid com…………..> insurance agent

If the commission is paid >15000 (15000- threshold limit)then TDS shall be deducted  at the rate of 5% in case of resident individual and 10% in case of domestic company.

If NO PAN or invalid PAN then 20% TDS shall be deducted.

 

 

Section 194-H commission or brokerage

The threshold limit is 15000/- for the commission or brokerage, 5% TDS will be deducted on Resident Indians and domestic company.

The transaction relating to securities not covered by section 194-H ,

Section 194-H is not attracted on :-

1. Brokerage and commission paid to under-writers ,

2. Brokerage and sub-brokerage on public issue of securities ,

3. Brokerage on stock exchange transactions of securities.

 However, TDS shall be deducted on brokerage or commission paid for commodities transactions.  

https://eknowledgeachiever.blogspot.com/2020/09/Tds-Rates-F.Y.2020-2021.html

SECTION 7-SUPPLY UNDER GST

SUPPLY OF GST 

Supply of GST

TAXABLE EVENT:-Taxable event under GST law is SUPPLY OF GOODS or SUPPLY OF SERVICES OR BOTH.

Its means NO SUPPLY NO GST 

SCOPE OF SUPPLY:- Section 7

Section 7(1)(a):- All forms of SUPPLY OF GOODS OR SUPPLY OF SERVICES or both such as sale, transfer, or disposal or agreed to be made for a consideration by a person in the COURSE OR FURTHERANCE OF BUSINESS. 

• GOODS:- Section 2(52) Every kind of movable property other than money, securities including Actionable claims, Growing crops, grass, and things attached to or forming parts of the land which are agreed to be served before SUPPLY.
• ACTIONABLE CLAIMS:- 

Actionable claims

• SERVICES: - Section 2(102) Anything’s other than GOODS, MONEY, SECURITIES.

Section 7(1)(b):- Import of Services for a consideration whether or not in the COURSE OR FURTHERANCE OF BUSINESS.

In simple ways, if any services are import in India whether connected in business or not shall be levied GST then whole services deemed to be SUPPLY if supply then GST shall be levied.

1. This section is applicable only for SERVICES & not for GOODS.
2. Import of services as referred under section 2(11) of IGST Act,2017, where

Supply of Services

Example: - MR.A, a proprietor has received the architect services for his house in Jaipur from an architect located in London at an agreed consideration of Rs 10,000/-. The import of services by MR. A is a supply under section 7(1)(b) though it is not in the course or furtherance of business. 

NOTE:-If services may be in course of furtherance of business or not this implies that import if services even for personal consumption would qualify as SUPPLY and if SUPPLY then GST shall be levied.

Section 7(1)(c):- Activities specified in SCHEDULE 1 made or agreed to be made without consideration.

SCHEDULE 1:- 

• Permanent transfer or disposal of business assets where ITC has been availed on such assets.

Example:- Mr.Rohit is the director of the XYZ company and 5th June 2020 purchase 4 computers at RS 2,00,000/- and paid GST @10%  RS 20,000/- and value of goods is Rs 2,20,000/- and 18th Aug 2020 ITC has been taken by Mr.Rohit then thereafter MR. Rohit donates all 4 computers to NGOs without consideration. since ITC was taken earlier, it would be considered as DEEMED SUPPLY.

• Supply of goods and/or services between related persons or distinct persons:- SUPPLY OF GOODS or SERVICES or both between:-

NOTE:- Gifts not exceeding Rs.50,000/- in value in a financial year by employers to an employee shall not be treated as SUPPLY OF GOODS or SERVICES or both. 

Example: - Mohan, a Chartered Accountant, has a registered Head-office in Delhi. He has also obtained registrations in the state of West Bengal in respect of his newly opened branch office. Mohan shall be treated as distinct persons in respect of registrations in West Bengal and Delhi.

• Supplies by the principal to an agent or vice-versa supply of goods:- 

1. Supply of goods by principal to his agents where agents have undertaken to supply such goods on the behalf of the principal;  

    `

 2.  Supply of goods by agents to his principal where an agent undertakes to receive such goods on              behalf of the principal.

• Import of services by a person from a related person or from any of his other establishments outside India, IN THE COURSE OR FURTHERANCE OF BUSINESS.

Section 7(1)(d):-The activities to be treated as supply of goods or supply of services as referred to in SCHEDULE II

Section7(1)(1A):- Certain activities shall be treated either as supply of goods or supply of services as referred to be in SCHEDULE II.

In schedule II,7 activities or transactions is specified TRANSFER/LAND & BUILDING/TREATMENT OR PROCESS/TRANSFER OF BUSINESS ASSETS/SUPPLY OF SERVICES/COMPOSITE SUPPLY/SUPPLY OF GOODS whether treated as either supply of goods or services.

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