Tax Deduction Tracker (Income Tax TDS, GST TCS/TDS)

Every construction RA bill triggers multiple statutory deductions: Income Tax TDS under Section 194C, GST TDS under Section 51 (for government deductors), labour cess under BOCW Act, PF / ESI contributions, professional tax. Missing any one creates a chain of consequences: - Interest @ 1.5% per month on late TDS deposits (compounds fast) - Disallowance under IT Act Section 40(a)(ia) — 30% of the contractor's payment becomes non-deductible expense for the deductor - GST audit findings — input tax credit denial - TRACES mismatch — vendor's Form 26AS doesn't reflect; vendor escalates; rectification headache - Penalty proceedings — under-deduction or non-deposit penalty up to TDS amount

The TDS Tracker is the per-bill, per-vendor ledger that prevents these failures by recording every deduction at point of payment, deposit reference, certificate issuance, and TRACES match status.

Per-bill deductions (typical mix):

Income Tax TDS (mandatory if turnover > limits): - Section 194C: contractors / sub-contractors - 1% if vendor is individual or HUF - 2% if vendor is firm / company - 20% if vendor's PAN not provided - Section 194J: professional fees (consultants, architects) — 10% (2% for technical services) - Section 194I: rent — 10% (plant + machinery hire) or 2% (land/building)

GST TDS (Section 51, only for govt + PSU + specified deductors): - 2% on payments to suppliers (CGST 1% + SGST 1%, or IGST 2% for inter-state) - Threshold: contract value > ₹2.5 lakh - Deposit via GSTR-7 by 10th of next month - TDS certificate (GSTR-7A) to vendor within 5 days

Labour cess (BOCW Act): - 1% of construction cost (1.4% in some states) - Deducted at source by govt employers from contractor bills - Deposited with state Labour Welfare Board

Deposit deadlines: - Income Tax TDS: by 7th of next month (March deduction = 30th April) - GST TDS: by 10th of next month (GSTR-7) - BOCW cess: per state rules, typically monthly - PF / ESI: by 15th of next month

Quarterly returns: - 24Q + 26Q (Income Tax TDS) by 31st of July, October, January, May - GSTR-7 (GST TDS) monthly - BOCW Cess return — annual

1. Wrong section applied — works contract treated as professional service (194J vs 194C); rate mismatch; demand notice on under-deduction.

2. PAN not collected — vendor's PAN not on file; should have deducted @ 20%; deducted @ 1-2%; difference recoverable from deductor.

3. GST TDS applied to private contracts — Section 51 only for government deductors; private contractors must NOT deduct GST TDS; vendor claims refund + escalation.

4. Late deposit — 7th deadline missed; 1.5% per month interest from due date till deposit date.

5. No certificate issued — Form 16A / GSTR-7A not issued to vendor; vendor can't claim credit; escalates.

6. TRACES mismatch — TDS deposited but quarterly return wrong PAN; vendor's Form 26AS doesn't reflect; vendor escalates.

7. Sub-contractor TDS confusion — main contractor deducting TDS from sub-contractor's bill; sub-contractor's deductee TAN compliance failure.

8. Mobilisation advance TDS — TDS applicable on advance; many forget; demand notice later.

9. Cumulative threshold not tracked — Section 194C @ ₹30,000 single payment / ₹1,00,000 aggregate; multiple small payments aggregate; cumulative not tracked.

10. GST on TDS treatment — TDS on GST-inclusive value vs GST-exclusive value confusion; rules clarify but practice varies.

Companion PMC formats: - Bill Register (PMC-BIL-REG-002) — master bill log - Subcontractor Bill (PMC-BIL-LOG-003) - Cost Control Report (PMC-BIL-LOG-004) - BOCW Return (PMC-LAB-FRM-008) — labour cess

Statutory references: - Income Tax Act 1961 — Sections 194C / 194J / 194I / 194IA / 194IB - GST Act 2017 — Sections 51 + 52 (TDS / TCS) + Rule 66 - BOCW Cess Act 1996 — labour cess @ 1% - Code on Social Security 2020 — under implementation (consolidates PF / ESI / gratuity) - TRACES portal — https://www.tdscpc.gov.in (TDS reconciliation) - GST portal — https://www.gst.gov.in (GSTR-7 / 7A)