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Liability to deduct TDS under GST by port trust is outside purview of AAR

October 8, 2018[2018] 98 taxmann.com 139 (AAR - GUJARAT)
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CGST : Issue as to 'whether applicant-port trust is liable to deduct TDS under Section 51 is not covered by Section 97(2)

Section 97(2), read with section 51, of the Central Goods and Services Tax Act, 2017 – As per section 51, Government mandates that (i) a department or establishment of Central Government or State Government, or (ii) local authority; or (iii) Government agencies; or (iv) such persons or category of persons as may be notified by Government on recommendations of council – to deduct tax at rate of one percent from payment made or credited to supplier of taxable goods or services or both, where total value of such supply under contract exceeds two lakh and fifty thousand rupees, since, issue raised by applicant-Port Trust that 'whether it is liable to deduct TDS under section 51' do not fall in category of Section 97(2), application for advance ruling was to be rejected without going into the merits of the case, on the issue of lack of jurisdiction, at the stage of admission

• The applicant-Port Trust was set up under the Major Port Trust Act, 1963. It had referred to the provisions of Section 51 where under the Government may mandate (i) a department or establishment of the Central Government or State Government, or (ii) local authority; or (iii) Government agencies; or (iv) such persons or category of persons as may be notified by the Government on the recommendations of the council – to deduct tax at the rate of one percent from the payment made or credited to the supplier of taxable goods or services or both, where total value of such supply under the contract exceeds two lakh and fifty thousand rupees.

• The applicant had sought advance ruling on 'Whether it is liable to deduct TDS under section 51 from the date of effective of the section 51.

• The issue raised by the applicant did not fall in the category of Section 97(2). The application is therefore rejected without going into the merits of the case, on the issue of lack of jurisdiction, at the stage of admission.

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