Waiver of TDS/TCS Interest Under Sections 201(1A) (ii) and 206C (7): CBDT’s 2025 Relief

A significant tax relief has been announced by the Central Board of Direct Taxes (CBDT). For qualified cases, CBDT waives the interest levy under Sections 201(1A) (ii) and 206C(7) of the Income-tax Act through its 2025 circular no. 08/2025.

The goal of this action is to lessen the financial burden of taxpayers who had to pay interest on TDS/TCS payments that were delayed for valid reasons. This relief is a much-needed reprieve for a lot of people and businesses.

However, what is the true meaning of this waiver? And who stands to gain from it? Let's dissect it.

What Is This Waiver About?

Interest on late or non-payment of TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) is covered by Sections 201(1A) (ii) and 206C (7) of the Income-tax Act.

In the past, taxpayers were still required to pay interest even if the delay was caused by technical difficulties or banking problems.

The CBDT declared in 2025 that in worthy cases, such interest may now be waived. Following comments from taxpayers and industry experts, this decision is described in detail in Circular No. 08/2025.

Why Did CBDT Announce This Relief?

The government's goal to facilitate compliance and assist legitimate taxpayers is reflected in the waiver.

Numerous companies, particularly start-ups and MSMEs, stated that the following factors frequently caused TDS/TCS deposit delays:

Technical issues with banking systems.
Payment is started ahead of schedule, but credit is given after the deadline.
Errors in the processing of payments even though taxpayers took prompt action.

The CBDT recognizes these practical difficulties and guarantees that no taxpayer is unjustly punished by permitting a waiver.

Who Is Eligible for the Waiver?

Not everybody is eligible. The recipients of this relief are taxpayers who actually experienced hardship.

Eligible cases include:

1. Payments made in advance of the due date but credited later because of system problems are examples of eligible cases.

2. Unintended delays that are out of the taxpayer's control.

3. situations in which taxes were paid but interest was assessed.

Ineligible cases:

1. Intentional non-payment or wilful defaults.

2. Persistent late filers without good cause.

Applications must be sent to the appropriate authorities, such as the Director General of Income Tax (DGIT), the Principal Chief Commissioner of Income Tax (Pr. CCIT), or the Chief Commissioner of Income Tax (CCIT).

The deadline for applying

A stringent deadline has been set by the CBDT.

Within a year of the fiscal year in which the interest was assessed, taxpayers must submit an application.

As an illustration:

The application needs to be filed by March 31, 2025, if interest was assessed in FY 2023–2024.

Since this deadline cannot be negotiated, prompt action is essential.

Why This Is Important for New Businesses and Start-ups:

Every rupee matters for new and start-up companies. Even minor fines are a major hardship due to tight budgets, scarce financial resources, and ongoing pressure to fulfil compliance requirements. This is particularly true for MSMEs, who sometimes lack specialized compliance teams and find it difficult to stay on top of constantly evolving tax laws.

The respite is especially helpful for STPI-registered corporations and IT firms that specialize in exports, as international banking procedures and transactions can occasionally result in unanticipated delays in TDS/TCS payments. These companies, who are already dealing with a number of operational difficulties, now have a safeguard against unjust interest charges brought on by uncontrollable circumstances.

We at Book My Accountant (BMA) collaborate closely with IT companies, MSMEs, and start-ups to assist them understand and comply with complicated tax laws. More than merely monetary comfort, this waiver gives these companies the chance to refocus their efforts on expansion and innovation rather than worrying about fines for inevitable delays.

How to Apply for the Waiver?

Here is a basic guide:

Examine your TDS/TCS transactions.
Verify whether interest has been assessed under Sections 206C(7) or 201(1A)(ii).
Gather supporting documentation.
Collect proof of payment initiation, bank statements, and any correspondence pointing out technical difficulties.
Create an application draft.
Request a waiver and provide a clear explanation of the delay.
Send to the appropriate authority
Send it to DGIT, CCIT, or Pr. CCIT by the deadline.
Follow-up
Keep track of your application and answer any questions the department may have.

What Effect Does This Have on You?

You now have the opportunity to get relief if you have paid interest or been charged interest as a result of actual banking or system errors.

For businesses, this means:

Improved cash flow since excessive interest is no longer a burden.
Increased confidence in compliance as a result of knowing that honest mistakes are handled fairly.

Why BMA Suggests Quick Action

Book My Accountant (BMA) has witnessed personally how quickly important deadlines can pass when tax compliance isn't given first priority. Therefore, if you think you are eligible for this waiver, we strongly advise you to take immediate action. Early application submission lowers last-minute stress and improves your chances of approval. Seeking professional aid is equally vital because applications that are accompanied by well-organized documentation have a much higher chance of being accepted. In order to ensure future operations, go more smoothly, now is also a great time to assess and enhance your TDS/TCS compliance procedure.

Popular Takeaways:

A significant 2025 relief is the CBDT's waiver of the interest levy under Sections 201(1A) (ii) and 206C (7).
Applications must be made on time.
Exporters, MSMEs, and startups stand to gain a great deal.
You can increase your chances of approval by seeking professional advice.

Conclusion:

Sections 201(1A) (ii) and 206C (7) of the CBDT provide a 2025 interest waiver, which is a welcome relief for upfront taxpayers, particularly exporters, MSMEs, and start-ups that are facing inevitable delays. It shows that the government wants to make compliance more equitable and useful. But because the relief is application-based and subject to stringent deadlines, prompt action is crucial.

To increase their chances of receiving this benefit, Book My Accountant (BMA) assists individuals and companies in creating strong applications with the required supporting documents. Now is the time to take action and lessen needless financial burden if you think you qualify.

Disclaimer:

This article has been prepared by Book My Accountant (BMA) for general awareness purposes. It is based on publicly available information and CBDT circulars. It should not be treated as legal or financial advice. For personalized consultation, please connect with a qualified tax expert.

Comprehending Section 194T: TDS on Payment Made by Partnership Firms to Partners

With the income tax situation changing, it is more crucial for firms to remain connected with their tax affairs. One of the major areas which partnership firms should be well aware of is Section 194T of the Income Tax Act, 1961 introduced in the Finance (No. 2) Bill, 2024, concerning the Tax Deducted at Source (TDS) on payment made to partners. This provision aims to ensure that tax compliance is streamlined and that partners are fairly taxed on the distributions they receive. In this blog, we’ll delve into Section 194T, exploring its implications for partnership firms and partners, and how it affects the broader landscape of income tax e-filing in India.

What is Section 194T?

Section 194T was added to solve the issue of tax on payment given by partnership companies to their partners. According to this section, any payment in excess of a certain amount received by a partner from the partnership firm would be subject to TDS. The very fundamental concept of TDS itself is to check if the tax is being deducted at the time of generation of income so that potential evasion of tax might be avoided.

When Does Section 194T Become Effective?

Section 194T would be particularly effective for:

Registered and Unregistered Partnership Firms: They come under that category.
Payment to Partners: Where a payment is being made to partners by a partnership firm that crosses the limit amount — defined as ₹20,000 in a financial year—the firm needs to deduct TDS at the rate of 10% at the time of crediting the income or before effecting the payment whichever is earlier.

It is compulsory for firms in partnership to monitor their payments so that this section is complied with, particularly as far as remitting their income tax returns is concerned. If the TDS is not deducted, then it will attract penalties and interest, and this will cause problems in the entire firm filing its taxes.

It is required to know the effect of TDS on partners in the interest of the firm and the partners. On payment made to partners, deducting TDS:

Declaration of Income: Partners have to declare what they get from the firm (after deduction of TDS) as income while submitting the income tax return. It keeps the transaction in an open form and makes their identification of total income rightfully easier.
TDS Deduction Claim: Partners can claim TDS deducted by the firms at the time of filing the income tax return, thus lowering their overall tax payment.
Effect on Cash Flow: Since TDS lessens the partners' cash flow, partners will have to take care of their own finances.

Significance of Compliance

Compliance by the partnership firm and also by partners is mandatory under Section 194T provisions. Non-compliance can result in:

Penalties: Firms can be penalized if they fail to deduct or pay the TDS in time.
Legal Consequences: Filing in delay will draw the income tax department's attention, and they may issue notices.

Tax Filing Procedure for Partnership Companies

Process for filing taxes of partnership firms for TDS includes the following:

Calculation of TDS: The firm has to calculate the amount of TDS to be deducted while paying partners with utmost caution. The threshold should be kept in mind so that deductions are not made unnecessarily.
Payment of TDS: The deducted sum should be paid to the government on the income tax e-filing website. TDS is usually payable within a week from the end date of the month in which deduction is being done.
Filing of TDS Returns: The firm is also required to file quarterly TDS returns, reporting the TDS deducted and paid, in Form 26Q. This is an important process in being compliant.
Issuance of TDS Certificate: Once the TDS return is filed, the firm is required to issue TDS certificates (Form 16A) to partners, indicating the TDS deducted. The certificate is useful for partners when they are reporting income tax return.

e-Filing Simplified

The Government of India has eased the process of e-filing income tax. Partnership firms and partners can now file their tax requirement online from the income tax e-filing portal. They are:

Filing of Income Tax Returns: Partners need to file their return with the e-filing website taking into consideration the credit of TDS to be reflected appropriately.

Keeping Proper Records

A successful tax planning largely depends on maintaining proper records. Partnership Firms should have proper records of:

Payments made to partners
Withholdings of TDS
Certificates of TDS issued

This will not only become easy to file appropriately but will also ready the firm in advance for any potential demand from the income tax department.

Payments Subject to TDS Under Section 194T

Type of Payment	TDS Applicability	Remarks
Salary/Remuneration	Yes	TDS applies if the aggregate exceeds ₹20,000 in a financial year.
Commission	Yes	TDS applies if the aggregate exceeds ₹20,000 in a financial year.
Bonus	Yes	TDS applies if the aggregate exceeds ₹20,000 in a financial year.
Interest on Capital/Loan	Yes	TDS applies if the aggregate exceeds ₹20,000 in a financial year.
Profit Share	No	Exempt from TDS under Section 194T.
Capital Withdrawal	No	Exempt from TDS under Section 194T.
Expense Reimbursement	No	Exempt from TDS under Section 194T.

Pros and Cons of Section 194T

✅ Pros	❌ Cons
Improved Tax Transparency Helps the Income Tax Department monitor partnership remuneration.	Cash Flow Disruption Partners may receive less than expected as TDS is cut upfront.
Better Financial Planning Regular deduction helps partners manage advance tax and avoid last-minute burdens.	Increased Compliance Burden More documentation, TDS returns, and deadlines to handle for firms.
Stronger Documentation & Accountability Firms are encouraged to maintain clear financial records, improving audit-readiness.	TDS on Book Entries TDS applies even on credited (not paid) amounts—affecting firms with cash constraints.
Ease in ITR Filing for Partners With TDS credit shown in Form 26AS, partners can smoothly proceed with income tax return filing.	Ambiguity in Deed Interpretation If the partnership deed isn’t clearly defined, categorizing payments becomes tricky.
Aligns with Digital India Mission Encourages usage of income tax e filing portal, and other paperless tools.	Risk of Penalties Delay in deduction, payment, or filing of TDS returns may lead to interest, penalty, or disallowance of expenses.

Tax Strategy: Planning and Consultation

Due to the intricacy in taxation and rules under Section 194T, it is recommended that partnership firms use tax experts or consultants. This assists businesses:

Keep abreast with modifications in taxation legislation
Develop tax savings schemes
Provide seamless compliance with income tax and TDS

Conclusion

All the partnership firms in India need to be aware of Section 194T. With due precautions while being TDS compliant and making use of facilities available on the website of e-filing income tax, firms can manage their taxations better. Tax tides change constantly and hence it is better to remain updated so that partners and partnerships can both meet their dues and pay lesser tax.

Overall, Section 194T is not only a compliance but also a chance for partnership firms to enhance their financial health by adopting strategic tax planning. Having knowledge about the TDS mechanism and its impact on income tax return filing, partnerships can foster transparency cultures, sense of responsibility, and compliance that ultimately prove to be beneficial to all concerned stakeholders.

📌 Disclaimer by Book My Accountant (BMA):
This blog is for informational purposes only and does not constitute legal or tax advice. Readers are advised to consult their tax advisors or reach out to Book My Accountant (BMA) for tailored professional guidance based on their specific circumstances. BMA will not be liable for any decision taken based on the content of this blog.

AI for Tax Compliance : How It's Revolutionizing TDS Assessments in India

India's tax regime is undergoing a sea change with the introduction of Artificial Intelligence (AI) and Data Analytics. Tax Deducted at Source (TDS) evaluations, which previously had been based on human instincts, are now being managed by AI-powered automation and data analytics. It increases compliance, accuracy, and efficiency in calculating taxes, and business houses and chartered accountants are being forced to adopt such newer technology.

The Application of AI in TDS Evaluations

Artificial intelligence-based systems are transforming TDS evaluation services through automated procedures, identification of discrepancies, and reduction of errors. Earlier, manual reconciliation and data entry used to be performed, hence resulting in errors and inaccuracy in computation. AI-based platforms apply machine learning algorithms to reconcile transactions, enable accurate deductions, and meet government policies.

Key Advantages of AI in TDS Evaluations

Error Minimization: AI minimizes human error to a large degree by cross-verification with pre-defined taxation laws and prior experience.
Enhanced Processing: Computer-based processing minimizes processing time to a large degree compared to manual assessments.
Forensic Predictive: AI anticipates potential discrepancies in TDS filing so that business houses can solve the same in good time.
Compliance with Regulator Regulations: AI products reflect the newest tax laws, thus accurate deductions based on regulation changes.

Light heartedness to Enterprises for Engagement Adoption:

Use of AI for TDS auditing lightens the level of compliance attainable by companies without being bogged down by cumbersome weights of manual checks and adjustments.

How Data Analytics Facilitates TDS Compliance

Data analytics is especially applicable to enhancing TDS consultancy service by authenticating patterns, detecting possible frauds, and delivering tax deduction insights. In the era of generating vast amounts of financial information on a daily basis, sophisticated analytics solutions allow organizations to:

Set Deduction Patterns: Pattern recognition ability enables organizations to find maximum tax-saving possibilities.
Detect Frauds: Artificial Intelligence-based analytics recognize discrepancies in deductions, which are advantageous for tax consultants and auditors to correct the mismatches.
Enhance Decision-Making: Real-time data analytics allow tax experts to make an optimum decision on tax compliance and tax planning.

AI & Data Analytics in TDS Consultancy Services

Indian TDS consulting companies are further investigating the potential of AI and analytics in an attempt to deliver successful tax solutions to clients. Tax consultants are using AI-driven dashboards to evaluate tax liability, identify mismatches, and maintain legal compliances.

Book My Accountant, a leading tax and financial services brand, is at the forefront of this transformation. With its expertise in TDS assessment services, the company provides AI-driven solutions that simplify calculating and adhering to taxes.

Why Companies Need AI-Based TDS Consultancy Services

Firms in Bhubaneshwar, Kolkata, and Bangalore need professional consultancy in tax to handle the complicated TDS provisions. A professionally managed TDS consultancy firm Kolkata like Book My Accountant keeps firms up to date about changing tax laws without any interference of any human being.

In the same way, TDS consultancy Bhubaneshwar services also utilize AI-based analytics to assist in maximizing tax deductions and avoiding compliance problems. With the integration of AI, companies can automate repetitive tax activities, minimizing human intervention and enhancing accuracy.

For Bangalore companies, AI-based TDS consultancy Bangalore solutions make it an easy job to deal with taxes. From e-billing to auto-filing of tax, AI revolutionizes the process of how companies deal with TDS assessments.

How Book My Accountant Leverages AI & Data Analytics for TDS Compliance

Book My Accountant leverages AI solutions to provide easy TDS assessment services. The organization provides:

Automated TDS Filings: Quick processing and timely compliance.
Real-Time Tax Tracking: Real-time tax assessments through AI-based dashboards.
Tax Solutions Personalized: Customized solutions for maximizing tax deductions to the extent and penalties avoided.
Data-Driven Decision Making: Analytics-based to achieve increased accuracy and compliance with laws.

Deploying AI to TDS estimates is not the tomorrow dream but the reality for companies eager to match the pace with times in an age of tax automation.

Upcoming AI & Data Analytics Trends for TDS Assessments

The future of TDS computations in India will see increased developments in AI and analytics, including:

Blockchain Integration: Transparent and secure tax transactions.
Machine Learning Models: Enhanced predictive tax calculations.
Cloud Solutions for TDS: Remote management and auto-launch tax data.

Since there is going to be more advancement in AI, organizations employing AI-founded tax consultants are going to have quicker, bug-free, and compliant TDS calculations.

Conclusion

Artificial intelligence and data analytics are revolutionizing tax deduction at source assessment services and making it fast, efficient as well as accurate. Book My Accountant offers industry-best TDS consultancy services in Bhubaneshwar, Kolkata, and Bangalore for implementing AI-based solutions for authentic taxes.

To experience the best-in-class AI-based TDS solutions, schedule an appointment with Book My Accountant today and enjoy a hassle-free experience of technology at tax.

Disclaimer
The above is general information. Material on this site is for general information purposes only. Readers are advised to consult a professional tax consultant before making any tax decision. Despite the exercise of care in updating information, Book My Accountant cannot be held liable for error or omission or loss arising from use of such information.

Top 5 Tax Consultants in Kolkata for 2025

You can overcome the challenges of taxation by consulting a professional who can forecast a better return on your investments. Expert tax planning and compliance advice is essential for entrepreneurs and those aiming to maximize tax returns. 2025 brought sharply increased demand for professional tax advisors, especially in large, bustling cities such as Kolkata. This article highlights the top five tax consultants in Kolkata, emphasizing their skills and services, including GST.

Book My Accountant

Overview

Book My Accountant is a top tax consultancy in Kolkata, offering complete tax solutions. They are a comprehensive financial resource, handling company formation and income tax compliance. Customized tax prep services maximize deductions and reduce taxpayer rates.

Services Offered

Income Tax Filing: Customized tax prep services maximize deductions and reduce taxpayer rates.
GST Services Kolkata: These include registration, filing, assessment, litigation and compliance and also comprises guidance on the confusions of the GST law for enterprises.
Company Formation: They help new companies establish themselves and ensure that all necessary legal compliance is envisioned and implemented from the start.
ROC Compliance: Comprehensive services for meeting the requirements imposed by the Registrar of Companies (ROC).
TDS/TCS Services: Timely filing of TDS and TCS returns is essential to avoid penalties.
Compliance Audit: Detailed audits to verify compliance with all relevant standards.
Financial Planning: Continuous financial planning services aimed at generating a more effective financial plan for the clients.

Why Choose Them?

Book My Accountant, a top tax advisor, consistently earns high marks for credibility and reliability in Kolkata. They understand client needs and stay updated on tax laws to ensure compliance and maximize client benefits.

Goyal Tax Services Pvt. Ltd.

Overview

Goyal Tax Services Pvt. Ltd. has established itself as a firm known for its expertise in accountancy and taxation. They have also gained a loyal customer base through their proactive role as tax advisors.

Services Offered

Tax Planning Services: These tax planning tools help the customers have a smaller tax liability as based on the corresponding financial status.
GST Services Kolkata: At Goyal Tax Services Pvt. Ltd., one is provided with strong GST consultancy services and compliance to the dynamic GST landscape.
Audit and Assurance Services: Comprehensive audits to provide transparency and compliance in financial reporting.

Why Choose Them?

Goyal Tax Services Pvt. Ltd.'s focus on client education and satisfaction has made it the top competitor in Kolkata. Their principal task is explaining technical tax concepts to its clients so they may be better informed when making decisions.

RSM India

Overview

RSM India has a strong market presence in the city of Kolkata and offers a broad range of professional services, such as tax consultants , audit and risk advisory services. Their international reach enhances their local expertise.

Services Offered

Corporate Tax Services: They offer a comprehensive set of corporate tax planning and compliance services that businesses can tailor to their specific needs.
GST Services Kolkata: Complete GST advisory services up through closing required for easier compliance of clients' business.
Financial Advisory: Performance enhancement through tailored financial advisory services.

Why Choose Them?

With a global network, RSM India offers insights into local and international tax laws, making them a top choice for clients seeking a broader perspective.

Partha Das & Associates

Overview

Partha Das Associates is a boutique tax consultancy firm distinguished by its attention to personalized service and its dedication to meeting every client's individual requirements.

Services Offered

Individual Tax Filing: Expertise in doing tax preparation for oneself, helping clients comply with personal tax liability as best they can.
GST Services Kolkata: Awareness of GST so that business activities are carried out in an accurate manner.
Transfer Pricing Services: Guide to transfer pricing, that is, of particular relevance to companies operating in foreign markets in respect to international trade.

Why Choose Them?

They are committed to providing clients a more personal and service focused relationship to which clients feel nurtured and listened to. They are able to design individual plan which is adapted to personas financial needs.

Saha & Associates

Overview

Saha Associates is a comprehensive financial consultancy firm that combines tax services with broader financial planning and consulting.

Services Offered

Business Tax Compliance: Assisting businesses in ensuring timely and accurate tax compliance.
GST Services Kolkata: They provide efficient GST services that businesses can use to mitigate the risk of non-compliance and enforcement.
Strategic Tax Planning: There are strategic recommendations for personal and corporate taxes.

Why Choose Them?

Saha Associates combines experience with a client-focused approach, making it a reliable legal and tax consultancy in Kolkata. That, in their aim, is to the betterment of clients’ tax systems is commendable.

Conclusion

Selecting a top tax consultant in Kolkata is crucial for financial benefits and tax compliance. In Kolkata, various firms can meet your GST and tax planning needs in 2025, allowing you to choose one that fits your personal requirements.

We need to get in touch with any of the above mentioned consultants for customisable solutions with respect to taxation, particularly for GST related purposes in Kolkata. Their help gives the information to comprehend the intricacies of taxation and guarantee financial well being.

TDS on Metal Scrap under GST: A Complete Guide

The Indian government has brought into effect new TDS provisions under the framework of Goods and Services Tax-specifically targeting all transactions in the form of metal scrap. With effect from 10 October 2024, these rules are aimed at improving tax compliance and transparency in the scrap materials sector. Let us dive into this and see what it will mean for the businesses buying and selling metal scrap.

What is TDS in GST for Metal Scrap?

TDS is a mechanism where tax is deducted at source at the time of making payment to the seller. Based on the latest GST rules, businesses, whose subject of business is procurement of metal scrap, are dutifully liable to deduct TDS at the time of entering into qualifying transactions.

And the transactions which attract TDS are under Chapter 72 to Chapter 81 of the Customs Tariff Act 1975, which comprises of:

Iron and Steel (Chapter 72)
Articles of Iron and Steel (Chapter 73)
Copper (Chapter 74)
Nickel (Chapter 75)
Aluminum (Chapter 76)
Lead (Chapter 78)
Zinc (Chapter 79)
Tin (Chapter 80)
Other base metals and cermet's (Chapter 81)

Important Provisions of the TDS Rule

TDS shall apply on metal scrap under GST if the aggregate value of supplies exceeds ₹2,50,000 per transaction. The taxable value of scrap material will be deducted for deduction, and not the total invoice value.

Rate of deduction is provided as 2%, split as below:

Intra-state: 1% CGST and 1% SGST
Inter-state: 2% IGST

Who must deduct TDS?

The Ministry of Finance issued Notification No. 25/2024-Central Tax on October 9, 2024, amending the earlier Notification No. 50/2018-Central Tax to clarify the Tax Deduction at Source (TDS) provisions under Section 51 of the CGST Act, 2017. Section 51 of the CGST Act 2017 deals with the mechanism of Tax Deduction at Source (TDS).

TDS provisions under Section 51 of the CGST Act shall not apply to the supply of goods or services between certain categories of persons specified in clauses (a), (b), (c), and (d) of sub-section (1) of Section 51 except for those specified in clause (d).

Process for becoming compliant

If you are a buyer dealing with metals scrap, here is what you need to do to become compliant with the new GST rules:

Obtain a Separate GST Registration

The buying party would be required to apply for a separate GST registration under REG-07 in order to start deducting TDS. Subsequently, the buyer can claim TDS on eligible transactions with which they will have to file a return month under Form GSTR-7. Simultaneously, the system generates a certificate of TDS, just like Form 16A under the Income Tax Act, after filing GSTR-7.

File Monthly Returns

The buyers who deduct TDS are liable to file GSTR-7 for the month. The return should be filed by the 10th of the next month where a payment liability will arise along with the return filing. This return should state the amount of TDS deducted.

Provide TDS Certificates

Once the return is filed by the purchaser, he shall issue the TDS certificate, GSTR-7A, to the supplier. Therefore, he would get the TDS credit to his ledger of cash at the end of every month.

TDS not Applicable in Respect of Metal Scrap

It is another important aspect that TDS under GST is not levied upon importing the metallic scraps. It does not draw any TDS deduction under such rules if the buyer imports scraps from abroad.

Conclusion

The introduction of TDS on metal scrap under the GST is perhaps a landmark to ensure better tax compliance in the industry. With the above move, the government has consequently mandated 2% TDS on all transactions, with an element of transparency and accountability that can be availed by the suppliers in due time.

Ensure your business is GST compliant with these new provisions by registering for GST TDS and the timely returns filing, contact Book My Accountant today for help with GST registration, TDS filing, and much more in accounting.