Regarding import-export TDS
My customer is based in France and ready to export the Software in India to sell.
He found the reseller to sell the product in India on commission based on selling price + 20% TDS
A question- who is liable to pay TDS- agent (importer) or exporter?
In which condition exporter can claim the refund and how?
Thanks for your help!
Kind regards
Pasar more
He found the reseller to sell the product in India on commission based on selling price + 20% TDS
A question- who is liable to pay TDS- agent (importer) or exporter?
In which condition exporter can claim the refund and how?
Thanks for your help!
Kind regards
Pasar more
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Depends entirely on the Invoicing and Collection process - 1. French can Invoice Agent who Invoices Customer, with payment being the reverse process OR 2. French Invoice Customer, Agent Invoice French with payments being made by the respective parties AND 3. The nature of the Software Product and whether any Services are bundled or seperately provided and by whom (French / Agent / domestic 3 rd party) will also determine the Tax implications. Answers to each of the above would determine: 1. Customs Duty Applicable 2. GST Applicable or not No Cookie Cutter solutions possible, unless more information shared. more
Aug 18
Dear Mr Pasa,
Please do gothrough the followineg article taken from the net-for your information please
As per GST Law, “ Notwithstanding anything contained to the contrary in this Act, the Central or a State Government may mandate, - (a) a department or establishment of the Central or State Government, or (b) Local authority, or (c) Governmental agencies, or (d) such persons or category of persons as may be notified, by the Central or a State Government on the recommendations of the Council, [hereinafter referred to in this section as “the deductor”], to deduct tax at the rate of one percent from the payment made or credited to the supplier [hereinafter referred to in this section as “the deductee”] of taxable goods and/or services, notified by the Central or a State Government on the recommendations of the Council, where the total value of such supply, under a contract, exceeds rupees ten lakh. Explanation. – For the purpose of deduction of tax specified above, the value of supply shall be taken as the amount excluding the tax indicated in the invoice.”
How is TDS on GST accounted?
The amount deducted as tax under this section shall be paid to the credit of the appropriate Government by the deductor within ten days after the end of the month in which such deduction is made, in the manner prescribed.
What are the main contents of TDS Certificate of GST?
As per GST Law, the deductor shall, in the manner prescribed, furnish to the deductee a certificate mentioning therein the contract value, rate of deduction, amount deducted, amount paid to the appropriate Government and such particulars as may be prescribed in this behalf.
How is failure in issuing TDS certificate of GST treated?
As per GST Act, if any deductor fails to furnish to the deductee the certificate, after deducting the tax at source, within five days of crediting the amount so deducted to the appropriate Government, the deductor shall be liable to pay, by way of a late fee, a sum of rupees one hundred per day from the day after the expiry of the five-day period until the failure is rectified: Provided that the amount of fee payable under this sub-section shall not exceed rupees five thousand.
How can a deductee claim TDS on GST?
The deductee shall claim credit, in his electronic cash ledger, of the tax deducted and reflected in the return of the deductor filed under sub-section (5) of section 27, in the manner prescribed.
How is failure in crediting TDS on GST amount with appropriate government treated?
If any deductor fails to pay to the credit of the appropriate Government the amount deducted as tax under sub-section (1), he shall be liable to pay interest in accordance with the provisions of section 36, in addition to the amount of tax deducted.
How is determination of the amount in default of TDS payment on GST considered as per GST Law?
As per GST Law, the determination of the amount in default under this section shall be made in the manner specified in section 51.
How to treat excess or erroneous deduction of TDS on GST?
As per GST Act, the refund to the deductor or the deductee, as the case may be, arising on account of excess or erroneous deduction shall be dealt with in accordance with the provisions of section 38: Provided that no refund to deductor shall be granted if the amount deducted has been credited to the electronic cash ledger of the deductee. more
Please do gothrough the followineg article taken from the net-for your information please
As per GST Law, “ Notwithstanding anything contained to the contrary in this Act, the Central or a State Government may mandate, - (a) a department or establishment of the Central or State Government, or (b) Local authority, or (c) Governmental agencies, or (d) such persons or category of persons as may be notified, by the Central or a State Government on the recommendations of the Council, [hereinafter referred to in this section as “the deductor”], to deduct tax at the rate of one percent from the payment made or credited to the supplier [hereinafter referred to in this section as “the deductee”] of taxable goods and/or services, notified by the Central or a State Government on the recommendations of the Council, where the total value of such supply, under a contract, exceeds rupees ten lakh. Explanation. – For the purpose of deduction of tax specified above, the value of supply shall be taken as the amount excluding the tax indicated in the invoice.”
How is TDS on GST accounted?
The amount deducted as tax under this section shall be paid to the credit of the appropriate Government by the deductor within ten days after the end of the month in which such deduction is made, in the manner prescribed.
What are the main contents of TDS Certificate of GST?
As per GST Law, the deductor shall, in the manner prescribed, furnish to the deductee a certificate mentioning therein the contract value, rate of deduction, amount deducted, amount paid to the appropriate Government and such particulars as may be prescribed in this behalf.
How is failure in issuing TDS certificate of GST treated?
As per GST Act, if any deductor fails to furnish to the deductee the certificate, after deducting the tax at source, within five days of crediting the amount so deducted to the appropriate Government, the deductor shall be liable to pay, by way of a late fee, a sum of rupees one hundred per day from the day after the expiry of the five-day period until the failure is rectified: Provided that the amount of fee payable under this sub-section shall not exceed rupees five thousand.
How can a deductee claim TDS on GST?
The deductee shall claim credit, in his electronic cash ledger, of the tax deducted and reflected in the return of the deductor filed under sub-section (5) of section 27, in the manner prescribed.
How is failure in crediting TDS on GST amount with appropriate government treated?
If any deductor fails to pay to the credit of the appropriate Government the amount deducted as tax under sub-section (1), he shall be liable to pay interest in accordance with the provisions of section 36, in addition to the amount of tax deducted.
How is determination of the amount in default of TDS payment on GST considered as per GST Law?
As per GST Law, the determination of the amount in default under this section shall be made in the manner specified in section 51.
How to treat excess or erroneous deduction of TDS on GST?
As per GST Act, the refund to the deductor or the deductee, as the case may be, arising on account of excess or erroneous deduction shall be dealt with in accordance with the provisions of section 38: Provided that no refund to deductor shall be granted if the amount deducted has been credited to the electronic cash ledger of the deductee. more
Aug 18
Exporter has no liability, importer will first pay IGST on import of goods to India and get full IGST credit while paying GST on further supply of the software. more
Aug 18
Dear Jah The party in France supply directly to end user in India.For such end user in India it is an import.Hence Customs duty as per law to be paid.Additionally the indian importer should pay IGST,which can be offset against his GST outward liability. You as a commission agent get commission.You are providing a service in India for the France Party.You are liable to pay service Tax more
Aug 18
If agent is doing only trade then he will not pay tds. End user has to pay tds at their end. If exporter want to take benefit than they have to take pan no and end user deduct 10 % only. Now every end user has to pay gst along with yes. Thanks Rajnish 9716406865 more
Aug 18
