TMI BlogWORKS CONTRACTX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, my client is a road contractor and the gst rate applicable @12% but those projects which has been started before 01/07/2017 and still work in progress. the old agreement related to cost has not been revised by the state government after implementation of gst. when we produce bill for payment the department determine it inclusive of gst. i can illustrate it as follow: Suppose overall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contract price= 150 pre-gst Bill produce= ₹ 100 Vat Deducted=Rs. 4( Vat @4%) Balance receive= 96 (assuming that tds has been deducted) post gst Bill produce= ₹ 50 (as per department it is inclusive of gst) our turnover i.e net of tax (50/112*100=44.64 and balance amount will be considered as gst) in this situation what we should do, can we make representation to commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of goods and service tax on the other part the road contractors are eligible for input tax credit. kindly resolve it soon thanks - Reply By Alkesh Jani - The Reply = Sir, For your ready reference, the provisions of Section 142(2) (a) and (b) , which are applicable in your case are reproduced below:- ( a ) where, in pursuance of a contract entered into prior to the appointed day, the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rice of any goods or services or both is revised upwards on or after the appointed day, the registered person who had removed or provided such goods or services or both shall issue to the recipient a supplementary invoice or debit note, containing such particulars as may be prescribed, within thirty days of such price revision and for the purposes of this Act such supplementary invoice or debit no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te shall be deemed to have been issued in respect of an outward supply made under this Act; (b) where, in pursuance of a contract entered into prior to the appointed day, the price of any goods or services or both is revised downwards on or after the appointed day, the registered person who had removed or provided such goods or services or both may issue to the recipient a credit note, containi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng such particulars as may be prescribed, within thirty days of such price revision and for the purposes of this Act such credit note shall be deemed to have been issued in respect of an outward supply made under this Act: Provided that the registered person shall be allowed to reduce his tax liability on account of issue of the credit note only if the recipient of the credit note has reduced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his input tax credit corresponding to such reduction of tax liability. Moreover, contract clauses may be referred regarding tax, if it is to be inclusive or to be levied separately. If nothing regarding this is mentioned then refer tender and its clauses. If nowhere it is clarified then the valuation shall be as per Rule 35 of CGST Rules, 2017 . With regards to ITC, if your main contract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or and not sub-contractor, ITC is not available. I invite our experts to correct me, if mistaken. - Reply By ajit tiwary - The Reply = Dear Sir Thanks for your reply in case of input tax credit my opinion is that in case of government contract the owner of the property will be the state government and the agency i.e Road construction Division is a main contractor and the main contractor is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appointing us as a contractor(i.e sub contract), secondly if the purchase of goods and services by the contractor to make the road project and handed over the project to the road construction division, we can take the credit as for furtherance of business by the road contractor. kindly reply me thanks - Reply By KASTURI SETHI - The Reply = How can you call yourself sub-contractor ? In my vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew, you are main contractor and hence not eligible for ITC. Agree with Sh.Alkesh Jani Ji . Govt. department acts for and on behalf of President/Governor of India. It is mentioned in contract executed between the Contractor and Govt. Department of Central Govt./State Govt. Check the Contract. Who is really Main Contractor ? However, I am of the view that this issue is worth raising bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore GST Council and hopefully next meeting is on 10.3.18. You are not alone sufferer on this issue. If you raise the issue, Govt. may clarify or amend ITC Rules. - Reply By SIDHARTH JAIN - The Reply = So wat is the outcome... Whether input will be allowed to contractor who is making the road or repairing the road... - WORKS CONTRACT - Query Started By: - ajit tiwary Dated:- 24-2-2018 Goods an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Services Tax - GST - Got 4 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
