Skip to content

CA Intermediate · Taxation · Tax Deduction at Source and Collection of Tax at Source

Under section 51 of the CGST Act, a deductor in Jaipur deducted GST TDS from a payment to a supplier. Which statement about the deductor's compliance is correct?

The deductor must deposit the tax deducted by the 10th of the following month and give the deductee a TDS certificate within five days of depositing it. Registration of the supplier does not remove the duty to deposit, and the certificate is not tied to a quarterly timeline.

  1. AThe deductor must deposit the deducted amount with the Government by the 10th of the next month and furnish a TDS certificate within five days of depositCorrect
  2. BThe deductor may keep the amount until the supplier files his return
  3. CThe deductor must furnish the TDS certificate within 30 days of the end of the quarter
  4. DThe deductor need not deposit the amount if the supplier is registered

Explanation

The deductor must pay the amount deducted to the Government within the prescribed time, being by the 10th of the month following the month of deduction. A certificate (Form GSTR-7A) must be furnished to the deductee within five days of crediting the amount to Government. Delay attracts a late fee. The quarterly option is wrong, as the certificate is linked to deposit.

Did you get it right without looking?

One question tells you little. A timed set on Tax Deduction at Source and Collection of Tax at Source shows your real accuracy, how long you take and where you lose marks.

Practise Tax Deduction at Source and Collection of Tax at SourceFree diagnostic mock

More Tax Deduction at Source and Collection of Tax at Source questions