GST Jamku AICollection of tax at source.
Section 52(1)
Notwithstanding anything to the contrary contained in this Act, every electronic commerce operator (hereafter in this section referred to as the "operator"), not being an agent, shall collect an amount calculated at such rate not exceeding one per cent, as may be notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator.
Explanation For the purposes of this sub-section, the expression "net value of taxable supplies" shall mean the aggregate value of taxable supplies of goods or services or both, other than services notified under sub-section (5) of section 9, made during any month by all registered persons through the operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said month.
Section 52(2)
The power to collect the amount specified in sub-section (1) shall be without prejudice to any other mode of recovery from the operator.
Section 52(3)
The amount collected under sub-section (1) shall be paid to the Government by the operator within ten days after the end of the month in which such collection is made, in such manner as may be prescribed.
Operators are required to pay the amount collected under Section 1 to the Government within ten days after the end of the month in which the collection occurred. The specific manner of payment is determined by the prescribed guidelines.
Section 52(4)
Every operator who collects the amount specified in sub-section (1) shall furnish a statement, electronically, containing the details of outward supplies of goods or services or both effected through it, including the supplies of goods or services or both returned through it, and the amount collected under sub-section (1) during a month, in such form and manner as may be prescribed, within ten days after the end of such month:
Provided that the Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing the statement for such class of registered persons as may be specified therein:
Provided further that any extension of time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.
Explanation for the purposes of this sub-section, it is hereby declared that the due date for furnishing the said statement for the months of October, November and December, 2018 shall be the [7th February, 2019].
Section 52(5)
Every operator who collects the amount specified in sub-section (1) shall furnish an annual statement, electronically, containing the details of outward supplies of goods or services or both effected through it, including the supplies of goods or services or both returned through it, and the amount collected under the said sub-section during the financial year, in such form and manner as may be prescribed, before the thirty first day of December following the end of such financial year:
Provided that the Commissioner may, on the recommendations of the Council and for reasons to be recorded in writing, by notification, extend the time limit for furnishing the annual statement for such class of registered persons as may be specified therein:
Provided further that any extension of time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.
Operator's Duty Every operator tasked with collecting a specified amount, as mentioned in sub-section (1), must submit an annual statement electronically. This statement should include details about the outward supplies of goods or services, or both, conducted through the operator. This also encompasses any returns of goods or services through the operator. The statement should also account for the amount collected under the aforementioned sub-section during the financial year.
Deadline for Submission The operator needs to furnish this annual statement before the thirty-first day of December following the end of the financial year. This ensures timely reporting and transparency in the tax collection process.
Commissioner's Authority The Commissioner holds the authority to extend the time limit for furnishing the annual statement based on recommendations from the Council. This extension can be granted for specific classes of registered persons. The Commissioner's decision to extend the time limit is documented in writing and communicated through a notification.
State Tax or Union Territory Tax It's noteworthy that any extension of the time limit, as notified by the Commissioner of State tax or the Commissioner of Union territory tax, is considered valid and applicable. This ensures consistency and adherence to the extended time frames across different regions.
Understanding these provisions helps create a smoother and more transparent tax collection process, ensuring that operators fulfill their duties and comply with the established timelines.
Section 52(6)
If any operator after furnishing a statement under sub-section (4) discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in the statement to be furnished for the month during which such omission or incorrect particulars are noticed, subject to payment of interest, as specified in sub-section (1) of section 50:
Provided that no such rectification of any omission or incorrect particulars shall be allowed after the [thirtieth day of November] following the end of the financial year or the actual date of furnishing of the relevant annual statement, whichever is earlier.
There are certain conditions to keep in mind when making corrections:
Discovery of Mistakes: The mistakes should be discovered without any involvement from tax authorities like scrutiny, audit, inspection, or enforcement activities.
Time Limit: Corrections can only be made within the month when the mistakes were noticed. After the thirtieth day of November following the end of the financial year or the actual date of furnishing the annual statement, whichever comes first, no corrections are allowed.
By following these rules, the person collecting tax can rectify errors and ensure compliance with the regulations.
Section 52(7)
The supplier who has supplied the goods or services or both through the operator shall claim credit, in his electronic cash ledger, of the amount collected and reflected in the statement of the operator furnished under sub-section (4), in such manner as may be prescribed.
When a supplier provides goods or services through an operator, they have the right to claim credit. This credit is based on the amount collected, as indicated in the statement provided by the operator under sub-section (4). The exact procedure for claiming this credit is outlined in the prescribed manner. It involves updating the electronic cash ledger of the supplier.
In simpler terms, if you're a supplier and you've used an operator to provide goods or services, you can get credit for the tax collected. This credit is linked to the amount reflected in the statement submitted by the operator. The specific steps for claiming this credit are detailed according to the prescribed guidelines.
Section 52(8)
The details of supplies furnished by every operator under sub-section (4) shall be matched with the corresponding details of outward supplies furnished by the concerned supplier registered under this Act in such manner and within such time as may be prescribed.
When a supplier provides goods or services through an operator, they have the right to claim credit. This credit is based on the amount collected, as indicated in the statement provided by the operator under sub-section (4). The exact procedure for claiming this credit is outlined in the prescribed manner. It involves updating the electronic cash ledger of the supplier.
In simpler terms, if you're a supplier and you've used an operator to provide goods or services, you can get credit for the tax collected. This credit is linked to the amount reflected in the statement submitted by the operator. The specific steps for claiming this credit are detailed according to the prescribed guidelines.
Section 52(9)
Where the details of outward supplies furnished by the operator under sub-section (4) do not match with the corresponding details furnished by the supplier under [section 37 or section 39], the discrepancy shall be communicated to both persons in such manner and within such time as may be prescribed.
In cases where there is a mismatch between the details of outward supplies submitted by the operator and those provided by the supplier under [section 37 or section 39], the system will notify both parties. This notification will be done in a manner and within a timeframe specified by the regulations.
This ensures that any discrepancies are promptly brought to the attention of the involved parties, allowing them to address and rectify the issues in a timely manner. Effective communication of discrepancies is crucial for maintaining transparency and accuracy in the tax collection process.
Section 52(10)
The amount in respect of which any discrepancy is communicated under sub-section (9) and which is not rectified by the supplier in his valid return or the operator in his statement for the month in which discrepancy is communicated, shall be added to the output tax liability of the said supplier, where the value of outward supplies furnished by the operator is more than the value of outward supplies furnished by the supplier, in his return for the month succeeding the month in which the discrepancy is communicated in such manner as may be prescribed.
When there's a mismatch or mistake identified in a transaction, the concerned party is notified under sub-section (9). This notification is sent to the supplier.
Failure to Rectify
If the supplier, after receiving the notification, does not correct the mistake in their valid return, or if the operator doesn't address the issue in their statement for the month in which the discrepancy is communicated, there are consequences.
Addition to Tax Liability
The amount associated with the identified discrepancy is then added to the output tax liability of the supplier. This addition occurs in the return for the month immediately following the month in which the discrepancy was communicated.
Conditions for Addition
This addition to tax liability is subject to a condition: it happens when the value of outward supplies reported by the operator exceeds the value of outward supplies reported by the supplier.
Prescribed Procedures
The specific manner in which this addition is made is determined by the prescribed procedures. These procedures are guidelines or rules established for this purpose.
In summary, Section 52(10) ensures that if a mistake is communicated but not rectified by the supplier or operator, the associated tax amount is added to the supplier's tax liability in the following month, under certain conditions and as per prescribed procedures.
Section 52(11)
The concerned supplier, in whose output tax liability any amount has been added under sub-section (10), shall pay the tax payable in respect of such supply along with interest, at the rate specified under sub-section (1) of section 50 on the amount so added from the date such tax was due till the date of its payment.
When there's a mismatch or mistake identified in a transaction, the concerned party is notified under sub-section (9). This notification is sent to the supplier.
Failure to Rectify
If the supplier, after receiving the notification, does not correct the mistake in their valid return, or if the operator doesn't address the issue in their statement for the month in which the discrepancy is communicated, there are consequences.
Addition to Tax Liability
The amount associated with the identified discrepancy is then added to the output tax liability of the supplier. This addition occurs in the return for the month immediately following the month in which the discrepancy was communicated.
Conditions for Addition
This addition to tax liability is subject to a condition: it happens when the value of outward supplies reported by the operator exceeds the value of outward supplies reported by the supplier.
Prescribed Procedures
The specific manner in which this addition is made is determined by the prescribed procedures. These procedures are guidelines or rules established for this purpose.
In summary, Section 52(10) ensures that if a mistake is communicated but not rectified by the supplier or operator, the associated tax amount is added to the supplier's tax liability in the following month, under certain conditions and as per prescribed procedures.
Section 52(12)
Any authority not below the rank of Deputy Commissioner may serve a notice, either before or during the course of any proceedings under this Act, requiring the operator to furnish such details relating to:
(a) supplies of goods or services or both effected through such operator during any period; or
(b) stock of goods held by the suppliers making supplies through such operator in the godowns or warehouses, by whatever name called, managed by such operator and declared as additional places of business by such suppliers, as may be specified in the notice.
Tax collection at source is a process wherein any authority not below the rank of Deputy Commissioner can issue a notice to an operator. This notice can be served either before or during any proceedings under the relevant Act. The purpose of this notice is to obtain specific details related to the operator's activities.
The notice may require the operator to furnish details on:
(a) Supplies of Goods or Services
Details regarding the supplies of goods or services, or both, conducted through the operator during a specific period.
(b) Stock of Goods
Information about the stock of goods held by the suppliers who make supplies through the operator. This includes goods stored in godowns or warehouses managed by the operator. These places may be declared as additional business locations by the suppliers.
Authority
The authority issuing the notice must be at a rank not below that of a Deputy Commissioner. This emphasizes the significance of the notice and ensures that it is issued by a competent and responsible entity.
Timing of the Notice
The notice can be served at any stage—either before or during ongoing proceedings related to the Act. This flexibility allows for the timely collection of crucial information to facilitate fair and accurate tax collection at source.
In summary, Section 52(12) empowers designated authorities to request specific details from operators regarding supplies of goods or services and the stock of goods held by suppliers. This provision plays a vital role in streamlining the tax collection process and ensuring compliance with the applicable regulations.
Section 52(13)
Every operator on whom a notice has been served under sub-section (12) shall furnish the required information within fifteen working days of the date of service of such notice.
In the realm of tax regulations, one crucial aspect is the collection of taxes at the source. This process ensures that taxes are deducted directly from the source of income before it reaches the recipient. In this context, Section 52(13) plays a significant role, outlining specific obligations for operators who have received notices.
The Duty of Operators
Operators in this context refer to individuals or entities responsible for certain transactions. When they receive a notice under sub-section (12), they are required to fulfill a specific obligation. This obligation involves furnishing the necessary information within a defined timeframe.
Timely Submission
The clock starts ticking from the date of service of the notice. Within fifteen working days, the operator must provide the required information. This timeframe is crucial to ensure a prompt and efficient processing of tax-related matters.
Understanding the basics of tax collection at the source and the corresponding responsibilities outlined in Section 52(13) is essential for operators navigating the intricacies of tax compliance. By adhering to the specified timeline for information submission, operators contribute to the smooth functioning of the tax collection process.
Section 52(14)
Any person who fails to furnish the information required by the notice served under sub-section (12) shall, without prejudice to any action that may be taken under section 122, be liable to a penalty which may extend to twenty-five thousand rupees.
Penalty for Non-Compliance
Individuals who do not furnish the required information, as specified in the notice served under sub-section (12), may be subject to a penalty. The penalty amount can be as high as twenty-five thousand rupees.
Conclusion
In summary, complying with the information requirements specified in the notice is crucial to avoid penalties associated with Section 52(14). This provision emphasizes the importance of timely and accurate submission of information in the context of tax collection at source.
Section 52(15)
The operator shall not be allowed to furnish a statement under sub-section (4) after the expiry of a period of three years from the due date of furnishing the said statement:
Provided that the Government may, on the recommendations of the Council, by notification, subject to such conditions and restrictions as may be specified therein, allow an operator or a class of operators to furnish a statement under sub-section (4), even after the expiry of the said period of three years from the due date of furnishing the said statement.
Explanation For the purposes of this section, the expression "concerned supplier" shall mean the supplier of goods or services or both making supplies through the operator.
Time Limit for Statement Submission
If you're an operator responsible for collecting taxes, there's a rule about when you can submit a statement. According to Section 52(15), you cannot submit a statement under sub-section (4) after three years have passed from the due date of furnishing that statement.
However, there's a provision that allows the government, based on the Council's recommendations, to let certain operators or a group of operators submit a statement even after the three-year period. This comes with specific conditions and restrictions mentioned in the notification.
Understanding "Concerned Supplier"
For this section, it's important to know who the "concerned supplier" is. This refers to the person or business supplying goods or services through the operator. They play a key role in the context of tax collection at the source.