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Guidelines issued for Deductions and Deposits of TDS by DDOs under Goods and Services Tax Law in J&K

Instances have come to the notice of the Finance Department that some DDOs are not following the provisions of TDS as envisaged under Goods & Services Law (J&K GST Act 20171 CGST Act 20171 lGST Act 2017).

Accordingly, the following comprehensive guidelines are issued for strict compliance by all the Government Departments of Union Territory of lammu & Kashmir.

 Section 5 1 of the Jammu and Kashmir GST Act, 2017 provides for deduction oftax by the Government Agencies (Deductor) or any other person to be notified in this regard, from the payment made or credited to the supplier (Deduaee) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees. The amount deducted as tax under this section shall be paid to the Government by the deductor within ten days afler the end of the month in which such deduction is made along with a return in Form GSTR-7 giving the details of deductions and deductees.

In order to comply with the provisions of the said Act for the purpose of TDS, the following steps are required to be taken by the DDOs:

A. Registration as Tax Deductors in the GST common portal

B. Deduction of TDS amount as per the provisions from the bills to be paid to the suppliersldeductees.

C. Deposit the TDS amount in to appropriate Govemment account(s).

D. File tax Returns for TDS within the prescribed time limit.

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