Section Section 52 of CGST Act:- Lays Provisions about Collection of Tax At Source i.e TCS, Applicable primarily for Electronic commerce Operators
Financial Year: 2017
Section 52
Collection of Tax At Source
(1) Notwithstanding anything to the contrary contained in this Act,
every electronic commerce operator
(hereafter in this section referred to as the “operator”),
not being an agent,
shall collect an amount calculated
at such rate not exceeding one per cent.,
as may be notified by the Government on the recommendations of the Council,
of 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.
Explanation:-
For the purposes of this sub-section,
the expression “net value of taxable supplies”
shall mean the aggregate value of taxable supplies of goods or services or both,
other than services notified under sub-section (5) of section 9,
made during any month by all registered persons
through the operator
reduced by the aggregate value of taxable supplies returned to the suppliers during the said month.
(2) The power to collect the amount specified in sub-section (1)
shall be without prejudice to any other mode of recovery
from the operator.
(3) The amount collected under sub-section (1)
shall be paid to the Government by the operator within ten days after the end of the month in which such collection is made,
in such manner as may be prescribed (Please read Rule 85(4).
(4) Every operator
who collects the amount specified in sub-section (1)
shall furnish a statement, electronically, containing the
details of outward supplies of goods or services or both
effected through it,
including the supplies of goods or services or both returned through it,
and the amount collected under sub-section (1)
during a month,
in such form and manner as may be prescribed, (Please read Rule 67)
within ten days after the end of such month.
Explanation:-
For the Purpose of this sub section, it is hereby declared that the due date for furnishing the said statement for the months of Oct, Nov, Dec 2018 shall be 31st Jan 2019
Explanation has been inserted by CGST(Fourth Removal of Difficulties) order 2018 wef 31st Dec 2018
31st Jan 2019 has been amended as 01st Feb 2019 by CGST (Second Removal of difficulties) order 2019 wef 1st Feb 2019
(5) Every operator
who collects the amount specified in sub-section (1)
shall furnish an annual statement,
electronically,
containing the details of outward supplies of goods or services or both effected through it,
including the supplies of goods or services or both returned through it,
and the amount collected under the said sub-section
during the financial year,
in such form and manner as may be prescribed, (Please read rule 80 of CGST Rules)
before the thirty first day of December
following the end of such financial year.
(6) If any operator
after furnishing a statement under sub-section (4)
discovers any omission or incorrect particulars therein,
other than as a result of
scrutiny, audit, inspection or enforcement activity
by the tax authorities,
he shall rectify such
omission or incorrect particulars in the
statement to be furnished for the month
during which such omission or incorrect particulars are noticed,
subject to payment of interest,
as specified in sub-section (1) of section 50
Provided that
no such rectification of any
omission or incorrect particulars
shall be allowed
after the due date
for furnishing of statement
for the month of September
following the end of the financial year
or the actual date of furnishing of the relevant annual statement, whichever is earlier.
(7) The supplier
who has supplied the goods or services or both
through the operator
shall claim credit,
in his electronic cash ledger,
of the amount collected and reflected
in the statement of the operator furnished under sub-section (4),
in such manner as may be prescribed. (Please read rule 87 of CGST Rules)
(8) The details of supplies
furnished by every operator under sub-section (4)
shall be matched
with the corresponding details of outward supplies
furnished by the concerned supplier
registered under this Act
in such manner and within such time as may be prescribed. (Please read rule 78 of CGST Rules)
(9) Where the details of outward supplies
furnished by the
operator under sub-section (4)
do not match
with the corresponding details furnished by the supplier under section 37 or Section 39 (Inserted by CGST Amendment Act 2018 wef 1st Feb 2019)
the discrepancy shall be communicated to
both persons
in such manner and within such time as may be prescribed. (Please read rule 79 of CGST Rules)
(10) The amount
in respect of which
any discrepancy is communicated under sub-section (9)
and which is not rectified by the supplier
in his valid return
or the operator in Collection of tax at source
his statement for the month
in which discrepancy is communicated,
shall be added to the output tax liability of the said supplier,
where the value of outward supplies
furnished by the operator
is more than the
value of outward supplies furnished by the supplier,
in his return for the month
succeeding the month
in which the discrepancy is communicated
in such manner as may be prescribed. (Please read Rule 67)
(11) The concerned supplier,
in whose output tax liability
any amount has been added under sub-section (10),
shall pay the tax payable in respect of such supply along with interest,
at the rate specified under sub-section (1) of section 50
on the amount so added
from the date such tax was due till the date of its payment.
(12) Any authority
not below the rank of Deputy Commissioner
may serve a notice,
either before or during the
course of any proceedings under this Act,
requiring the operator to furnish such details
relating to:-
(a) supplies of goods or services or both
effected through such operator during any period; or
(b) stock of goods
held by the suppliers
making supplies through such operator
in the godowns or warehouses,
by whatever name called,
managed by such operator
and declared as additional places of business
by such suppliers,
as may be specified in the notice.
(13) Every operator on whom a
notice has been served under sub-section (12)
shall furnish the required information
within fifteen working days of the date of service of such notice.
(14) Any person who
fails to furnish the information required
by the notice served under sub-section (12)
shall, without prejudice to any action that may be taken under section 122,
be liable to a penalty which may extend to twenty-five thousand rupees.
Explanation:-
For the purposes of this section, the expression
“concerned supplier”
shall mean the
supplier of goods or services or both
Thanks
CA Rahul Gupta