The government on Thursday notified the form for audit report and reconciliation statement that needs to be filed annually by taxpayers with a turnover of more than Rs 2 crore. Additionally, the government notified October 1 as the implementation date for rolling out provisions of tax collected at source (TCS) and tax deducted at source (TDS).
While TDS is applicable for notified entities that supply goods and services worth over Rs 2.5 lakh, TCS is to be collected by e-commerce firms before making payments to sellers active on their portal. The rate for both is 1 per cent. Due to increased compliance burden, the GST Council had kept provisions of TCS/TDS, considered to be important anti-evasion tools, suspended since the new tax regime was rolled out in July last year. Also, another provision of reverse charge mechanism has also been kept in abeyance since July 2017. —FE