Interest on GST to be charged on Net GST Tax liability w.e.f July 01, 2017

The Hon’ble Madras High Court in the case of M/s. Manasarovar Motors Private Limited v. The Assistant Commissioner and Others [W.P. No. 4468 of 2020, dated 29 September 2020] has set aside orders for levying interest on input tax credit (“ITC”) as applied on delayed payment in line with GST Council’s resolution of levying interest on net cash liability only with effect from July 1, 2017, and held that the proviso to Section 50 of the Central Goods and Services Tax Act, 2017 (“CGST Act”) Act is retrospective in operation notwithstanding the notification bringing it into effect from September 1, 2020. 
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How to file Nil TDS return on TDSCPC website?

How to file Nil TDS return on TDSCPC website?

If you are a tax deductor and making payment time to time of TDS then you must need to file TDS return.

Tax Deducted at Source or TDS refers to an advance tax which is deducted from the income or earnings of an individual or an organization before actually crediting the income into the account of an individual or entity, as per the Taxation Code of India. 


As the name suggests, Tax deducted at source, it is the tax which is deducted or subtracted from the income at the source from where income was generated. The tax so collected at source is directly contributed to the government’s revenue on behalf of the taxpayer or income generator. So, the TDS on the earnings of individuals and businesses become one of the sources of government revenue and this is the reason why the provisions of TDS plays an important role for government. 


The Income Tax Act, 1961 by the Central Board of Direct Taxes (CBDT) controls and governs the rules and regulations of TDS. Tax Deducted at Source applies to both kinds of income – Regular income as well as Occasional or Irregular income. So, we can say that TDS is deducted from various incomes such as Salary, Commission, Rent, Professional Fees and Interest. However, TDS is not confined to just these incomes. 


The responsibility of deducting the TDS lays on the shoulders of the TDS deductor that is the employer or the payee. The payee or the employer owns an obligation to deduct the tax before paying the salary or income to the receiver or employer. Here is a brief list of individuals who are TDS Deductors (who are liable to deduct TDS) under the Taxation Rules. 


List of TDS Deductors 

  • Individuals 
  • Body of Individuals 
  • Association of Individuals 
  • Partnership Firms 
  • Hindu Undivided Family 
  • Limited Companies 
  • Local Authorities 


Benefits of Paying 

TDS It is to be noted that TDS can be deducted only from the earnings which imply that this TDS liability sprouts out only in the case of earnings or income. TDS is deducted ahead making payment and is taken from the payments which are made in cash, cheque or credit. The amount so collected under TDS is deposited in government revenue through different government agencies. The provision of TDS holds benefits for the government as well as the individual on behalf of whom TDS has been paid. Now, let’s have a look at the benefits of paying TDS for the government. 

  • Tax evasion is prevented as tax is deducted at source. 
  • Tax is collected in a duly and timely manner. 
  • A big squad of individuals falls under the tax net. 

TDS collection is a constant source of revenue for the government. 


Rate of TDS deduction 

TDS is deducted at various rates based on nature and the amount of income earned. Different TDS rate applies to different kinds of income. The tax has to be paid on the extra amount earned above a certain maximum threshold which is tax-exempt. TDS rate varies from 1 percent to 30 percent on different types of payments including salaries, commissions, professional fees, interest earned, rent, etc. Read Also: TDS Online Payment Procedure, Due dates, and Forms: Ultimate Guide Method of TDS deduction TDS is deducted by the deductor from the payment made to the receiver at a certain fixed rate applicable to that particular type and source of income. Deductor is liable to deduct the TDS and further deposit it to the government. For instance, when the employer pays a salary to the employee, the employer plays the role of deductor and the employee becomes the TDS deducted. 


Few Noteworthy Points about TDS Returns

  • TDS Return refers to a quarterly statement that is submitted by the deductor to the Income Tax Department. 
  • A TDS Return can be defined as a summary of all the TDS associated transactions that are carried during a quarter.
  • TDS statement showcases a summary of all the entries of TDS collected and paid by the deductor to the Income Tax Authority. 
  • TDS Return statement contains the details such as deductor’s & deductee’s PAN number, detailed particulars of the TDS contributed to the government’s revenue and the information of TDS Challan. 
To File NIL TDS return go to https://contents.tdscpc.gov.in/ and login.


After login you need to navigate to Statements / Payments - Declaration of Non Filing of TDS return sees below image:

After clicking on the above link, you can navigate to the page where system asks you to select the relevant quarter, year, Form Type and Reason for non-filing of TDS return.

Select details for which you want to file Nil TDS return and reason for the same. 

It's done!

Your nil tds return filing is done, save the acknowledgement appear on the screen for your reference. 

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Due date Extension of Income Tax, Tax Audit and Annual GST Return

Due to Covid - 19 pandemic, each business survives to stand, there is no business or no income increase in this pandemic. Due to covid some of the business just about to close, so government giving a big relief to file Income Tax Return, Tax Audit Return and GST Annual Return Form 9, also TDS return date is extended to 31st March 2020 for September 2020. 

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How to Maintain Bill Wise accounting in Tally?

How to Maintain Bill Wise accounting in Tally?

Generally, accountants use tally to manage their business and compliances, but tally is not only for this. Tally is a broad software which helps you to manage and reconcile each entry and each statement like bank reconciliation, sundry creditors, sundry debtors.

The feature of reconciling bank reconciliation is available in Bank Statement. For Sundry Creditors and Sundry Debtors, you need to enter the bill wise details which is a very powerful feature for manage the parties reconciliation and if you enable this feature then no need to reconcile the party ledger manually. Bill wise details also help you to manager your TDS liability and TDS deducted by the party.


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How to Setup TCS on sale of Goods in Tally?

 How to Setup TCS on sale of Goods in Tally?

दोस्तों आज हम करेंगे TCS on sale of Goods के बारे में, जैसा की आप जानते है की गवर्नमेंट ने नया नोटिफिकेशन के ज़रिये TCS सभी प्रकार के उत्पादों पर लगा दिया है| इस नोटिफिकेशन में जिस भी कंपनी, पार्टनरशिप या व्यक्तिगत व्यवसाय 10 करोड़ से ऊपर है उनको अपनी सेल पर या सेल पर मिली रिसीप्ट पर आपको TCS देना होगा| अगर आप सेल पर TCS देना चाहते है तो आपको टैली में इसके लिए सेटअप करना होगा| नए TCS का मेन कोड 206C है और इसका सब कोड 1H है, तो ये कोड हुआ 206 -1H|  
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