The article explains the Section-wise requirement of TDS deduction with provisions made for FY 2018-19 under GST or Goods & Services Tax. It also covers threshold exemption limit and the rate at which TDS needs to be deducted. The article is updated as on 01.10.2019 to include sections under which TDS needs to be deducted from 01st October 2019. A newly introduced section is Section 194M – TDS on any work in pursuance of contract (Commission, brokerage or professional Services) and Section 194N – TDS on Payment in Cash.
The below table explains everything about the update in the TDS Provisions made for FY 2018-19 under GST:
| Section | Deductor | Deductee | Limit | Rate |
| 192 – TDS on Salary | Any Person (Employer) | Any Person (Employee) | Basic Exemption Limit | Rate Applicable to employee |
| 192A – TDS on payment of the Accumulated balance in employee’s PF | Employee’s PF Scheme | Employee | 50,000/- | 10% |
| 193 – TDS charged on Interest on Securities | Any Person | Any resident Person | – | 10% |
| 194 – TDS on Dividend | Domestic Company | Any resident Person | – | 10% |
| 194A – TDS on Interest (other than Interest on Securities) |
Any resident Person | 5000/- | 10% | |
| 194B – TDS on Winning from lotteries | Any Person | Any person | 10,000/- | 30% |
| 194BB – TDS on Winning from Horse Racing | Any Person holding license granted by govt. | Any Person | 10,000/- | 30% |
| 194C – TDS on payments to Contractors | Any Person (Applicable to IND, HUF, AOP, BOI only if covered by Sec 44AB in the immediately preceding PY) | Any resident Contractors | If Single payment exceeds Rs. 30,000/- OR Aggregate of all payments to a person during FY exceeds Rs. 1,00,000/- | If Deductee is Ind/HUF – 1% Other Deductees – 2% |
| 194D – TDS on Insurance Commission | Any Person | Ay Resident Person | 15,000/- | 5% |
| 194DA – TDS on maturity proceeds of Life Insurance Policy | Any Person | Any Resident Person | 1,00,000/- or more in a year | 5% (w.e.f. 01/09/19) |
| 194E – TDS on payment to NR Sportsmen, entertainer, Sports association or institution. | Any Person | NR Sportsmen, entertainer, Sports association or institution. | – | 20% + 4% E cess |
| 194EE – TDS on National Savings Schemes Payments | Any Person | Any Person | 2500/- | 10% |
| 194G – TDS on Commission on sale of lottery tickets, etc. | Any Person | Any Person | 15,000/- | 5% |
| 194H – TDS on Brokerage or Commission | Any person (Applicable to IND & HUF only if their turnover/gross receipts exceed monetary limits specified in Sec 44AB in Preceding FY) | Any Resident Person | 15,000/- | 5% |
| 194I – TDS on Rent | Any person (Applicable to IND & HUF only if their turnover/ gross receipts exceed monetary limits specified in Sec 44AB in Preceding FY ) | Any Resident Person | 2,40,000/- | Rent for Land & building – 10% Rent for Plant & machinery – 2% |
| 194IA – TDS on transfer of Immovable Property other than Agriculture Land | Any Person | Any Resident Person | 50,00,000/- | 1% |
| 194IB – TDS on Payment of Rent by Ind Or HUF | Ind or HUF whose turnover/ gross receipts does not exceed the limits of Sec 44AB in Preceding FY | Any Resident Person | 50,000/- per month | 5% |
| 194IC – TDS on payment under the Joint Development Agreement | Any Person | Any Resident Person | – | 10% |
| 194J – TDS on Professional Fees/ Technical Services | Any person (Applicable to IND & HUF only if their turnover/ gross receipts exceed monetary limits specified in Sec 44AB in Preceding FY) | Any Resident Person | 30,000/- | 10% (For call centres – 2%) |
| 194LA – TDS on Compensation for Compulsory Acquisition of Immovable Property | Any Person | Any Resident Person | 2,50,000/- in an FY | 10% |
| 194LB – TDS on Interest from Infrastructure Debt Fund | Notified Infrastructure Debt Fund | Non-Resident & Foreign Company | – | 5% |
194LC – TDS on Interest from an Indian Company |
Indian Company |
Non-Resident & Foreign Company | – | 5% |
| 194LD – TDS on Interest on Govt Securities/ Rupee Denominated Bond | IndianCompany or Government | Foreign Institutional Investors (FII) or Qualified Foreign Investor (QFI) | – | 5% |
| 194M – TDS on any work in pursuance of contract (Commission, brokerage or professional Services) | IND/HUF (other than those covered u/s 194C, 194H & 194J) | Any Resident Person | 50,00,000/- | 5% (w.e.f. 01/09/19) |
| 194N – TDS on Payment in Cash | Banks, Co-operative banks & Post Offices. | Any Person | 1,00,00,000/- | 2% (w.e.f. 01/09/19) |
| 195 – TDS on Payments to Non Residents or Foreign Company (payments not covered specifically in other sections) | Any Person | Non Resident or Foreign Company | – | Rate as per Finance Act or Rate Prescribed u/s 90 or 90A. |
Apparently these were the main updates in TDS Provisions for FY 2018-19 under GST. To know more about the updates on the TDS Provisions for AY 2018-19 under GST and relevant support you can connect with us and get access to our team of qualified experts.
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