Who are the Persons Liable to Deduct tax
Following persons shall be liable to deduct TDS @ 2% (1% CGST and 1%
SGST or 2% for IGST):
1) a department or establishment of the Central Government or State
Government
- The term Government as defined in clause 26A in section 65B being inserted by the Finance Bill, 2015 means and includes the following-
- Central Government and its departments of Central Government,
- State Government and its departments, and
- A Union Territory and its departments
- Department of the Government like Revenue, Economic Affairs, or Disinvestment which are attached to respective ministry of Finance of Central Government would be regarded as the deductor
2) Local Authority
- Panchayat as defined in clause (d) of Article 243 of the Constitution,
- Municipality as defined in clause (e) of Article 243P of the Constitution,
- Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central or any State Government with the control or management of a municipal or local fund
- Cantonment Board as defined in section 3 of the Cantonments Act, 2006
- Regional Council or a District Council constituted under the Sixth Schedule to the Constitution;
- Development Board constituted under Article 371 and article 371J of the Constitution
- Regional Council constituted under Article 371A of the Constitution
3) Governmental Agencies
4) an authority or a board or any other body, –
a Set up by an Act of Parliament or a State Legislature; or
b Established by any Government, with fifty-one per cent. or more
participation by way of equity or control, to carry out any function
5) Society established by the Central Government or the State Government
or a Local Authority under the Societies Registration Act, 1860 (21 of
1860);
6) Public sector undertakings.