Skip to content

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

Which statement about the registration of a person liable to deduct tax at source under section 51 of the CGST Act is correct?

A person liable to deduct tax at source under section 51 must obtain registration as a tax deductor, even if their aggregate turnover is below the normal threshold and they are not otherwise liable to register under GST.

  1. AA TDS deductor must obtain registration only if its aggregate turnover exceeds Rs 20 lakh
  2. BA TDS deductor is required to be registered as a deductor, even if not otherwise liable for normal registrationCorrect
  3. CA deductor needs no registration if the supply is below Rs 2.5 lakh
  4. DA deductor must register only in the State of the supplier

Explanation

Persons required to deduct tax under section 51 must take registration as a tax deductor, even if not liable to regular registration. The turnover threshold does not apply to them.

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