It refers to circular-number 65-39-2018-DOR dated 14.09.2018 by Department of Revenue, Government of India which has created unnecessary complications for account-departments of central ministries and others concerned wherein it is directed that on any payment made towards bills with GST, there will be two rates of Tax-Deducted-At-Source TDS, one on basic payment without TDS generally at rate of 10-percent, and second at rate of 2-percent on amount of GST.
Such dual rate of TDS on a single payment creates unnecessary confusion and complication for all concerned without any appreciable relief to the payee. Best is to have single rate of TDS on total payment inclusive of GST for simplicity in accounting.
Income Tax provisions should be further simplified by abolishing separate number for those deducting tax at source. There should be only one Permanent Account Number PAN, which may also be basis for deducting tax at source.
MADHU AGRAWAL