Dear Readers

Earlier Notification 33/2017 has been superceded:-   A notification No 33/2017 Central Tax has been issued on 15th Sep 2017 which cant be implemented because of system unavailability or other reasons has been superceeded by  Notification No 50/2018. This notification has provided with date of 18th Sep as the date for TDS Deduction but the same has not been implemented.   You can download old Notification No 33/2017 for your reference:-   Please download from PDF Image

Notification No 50/2018 Central Tax

Govt has notified a Notification No 50/2018 Central Tax Dated 13th Sep 2018 which has provided that TDS Provisions under section 51 will be made applicable from 1st Oct 2018 and also

Following Persons have been notified under Section 51(1)(d) for deducting TDS under this notification

(a) an authority or a board or any other body,

 (i) set up by an Act of Parliament or a State Legislature; or

(ii) established by any Government,

with fifty-one per cent. or more participation by way of equity or control, to carry out any function;

(b) Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860);

(c) public sector undertakings.

Please download notification from following PDF image

Doubts has arisen that in Notification No 50/2018 whether

“with fifty-one per cent. or more participation by way of equity or control, to carry out any function”

Is applicable for (a)(ii) only ??

Notification No 57/2018 Central Tax Dated 23rd Oct 2018

Govt has issued a notification 57/2018 dated 23rd Oct 2018 central tax which has provided that TDS provisions under Section 51 should not be applicable on Authorities under the Ministry of Defence.

Annexure A has also been notified on which TDS provisions will apply

Please read Notification along with Annexue Afrom following PDF Image

Notification No 61/2018 Central Tax Dated 05th Nov 2018

Govt has issued a notification 61/2018 dated 5th Nov 2018 central tax which has provided that TDS provisions under Section 51 should not be applicable on transactions between one public sector undertaking to another public sector undertaking.

Please read Notification from following PDF Image

Notification No 73/2018 Central Tax dated 31st Dec 2018

Govt has issued a notification 73/2018 dated 31st Dec 2018 central tax which has provided that

TDS provisions should not be applicable on transactions between one person to another specified under (a), (b), (c), (d) of section 51(1) of the said act.

Please read Notification from following PDF Image

Circular No 76/50/2018 GST dated 31st Dec 2018

Govt issued a circular and clarified in point no (iv) that

with fifty-one per cent. or more participation by way of equity or control, to carry out any function

is applicable for both (a)(i) as well as (a)(ii)

In short we can read as follows

(a) an authority or a board or any other body,

 (i) set up by an Act of Parliament or a State Legislature with fifty-one per cent. or more participation by way of equity or control, to carry out any function;

or

(ii) established by any Government with fifty-one per cent. or more participation by way of equity or control, to carry out any function;

Please download Circular from following PDF image

Thanks

CA Rahul Gupta