Question

What is the difference between taxpayer and deductor?

Answer 1

Answer:

Deductor is the person who deducts the tax at source on specified payment made by him. This tax deducted by the deductor has to be deposited with the Income Tax Department within the prescribed time limit. He is also required to report the details of tax deducted in a statement.

While a GST practitioner is a person approved by the central or state government to perform activities on behalf of the taxpayer. A tax payer can authorize a GST practitioner to do certain work under GST once authorized. There are laid down rules of eligibility to become a GST practitioner.

Answer 2

Answer:

The correct answer to the question-"What is the difference between taxpayer and deductor? is-

Tax payer actually pays the tax.     Tax deductor collects tax from tax payers and remit to the government.

Explanation:

Deductor

• Deductor means the person  who is payable for the supplies obtained responsible for making the payment to vendor.
• Under the GST regime, section 51 of the CGST Act, 2017 prescribes the authority and procedure for 'Tax Deduction at Source'.
• The tax deducted by the deductor has to be deposited with the Income Tax Department within the prescribed time limit.
• He is also required to report the details of tax deducted in a statement.

Taxpayer

• A taxpayer is a person or organization  who is responsible to pay tax.
• The term "taxpayer" generally characterizes one who pays taxes.
• Modern taxpayers have an identification number, a reference number issued by a government to citizens or firms.
• They are an individual or business entity which is obligated to pay taxes to a federal, state, or municipal government body.