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

  1. The term Government as defined in clause 26A in section 65B being inserted by the Finance Bill, 2015 means and includes the following-
  2. Central Government and its departments of Central Government,
  3. State Government and its departments, and
  4. A Union Territory and its departments
  5. 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

  1. Panchayat as defined in clause (d) of Article 243 of the Constitution,
  2. Municipality as defined in clause (e) of Article 243P of the Constitution,
  3. 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
  4. Cantonment Board as defined in section 3 of the Cantonments Act, 2006
  5. Regional Council or a District Council constituted under the Sixth Schedule to the Constitution;
  6. Development Board constituted under Article 371 and article 371J of the Constitution
  7. 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.