(a) Applicability of TDS u/s 51 of CGST Act, 2017
Legal Position:
As per section 51 of the CGST Act, 2017, TDS @ 1% each under CGST and SGST (2% for IGST) is required to be deducted by notified persons (including Government departments, PSUs, local authorities, etc.) from the payment made or credited to the supplier, where the total value of supply under a single contract exceeds \u20b92,50,000 (exclusive of GST).
Application to the Given Case:
Total supply amount (inclusive of GST) = \u20b913,57,000
IGST rate = 18% (but it is intra-State, so CGST + SGST @ 9% + 9% = 18%)
Value of supply excluding GST = \u20b913,57,000 \u00d7 (100/118) = \u20b911,50,000
Since \u20b911,50,000 > \u20b92,50,000, the TDS provisions under section 51 are applicable.
The consideration is received in 5 equal instalments.
Value per instalment = \u20b911,50,000 \u00f7 5 = \u20b92,30,000
TDS @ 1% CGST and 1% SGST is deductible on each instalment of \u20b92,30,000:
- CGST TDS = 1% \u00d7 \u20b92,30,000 = \u20b92,300 per instalment
- SGST TDS = 1% \u00d7 \u20b92,30,000 = \u20b92,300 per instalment
Note: Even though each instalment individually is less than \u20b92,50,000, TDS is applicable since the total contract value (\u20b911,50,000) exceeds the threshold of \u20b92,50,000.
Period for Deposit of TDS:
The amount deducted as TDS shall be paid to the Government account by the deductor within 10 days after the end of the month in which such deduction is made (i.e., by the 10th of the succeeding month).
(b) Details to be Maintained in Separate Accounts for Works Contract u/r 56 of CGST Rules, 2017
Every registered person executing works contract shall keep separate accounts showing:
1. The names and addresses of the persons on whose behalf the works contract is executed.
2. Description, value and quantity (wherever applicable) of goods or services received for the execution of the works contract.
3. Description, value and quantity (wherever applicable) of goods or services utilized in the execution of the works contract.
4. The details of payment received in respect of each works contract.
5. The names and addresses of suppliers from whom goods or services were received for the purposes of the works contract.