TMI BlogGST APPLICABILITY ON TRANSACTION WHETHER IT IS SUPERVISION CHARGES OR WORK CONTRACTX X X X Extracts X X X X X X X X Extracts X X X X ..... Respected Members, My client is a government entity which undertakes the work of construction of immovable property on behalf of other government departments/authorities/board/entity etc (herein after referred as govt.). While allocating the work to my client they mention the cost of construction and fixed percentage of supervision charges, my client then publish and issue the tender to sum othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r contractor , my client add its supervision charges on what ever the bill is raised by the tender allotee and issue a demand note to govt, for example: Cost of construction: 100 Cost of Interior : 50 Total Cost : 150 Supervision charges (5% of total cost) : 7.5 My question is whether the invoice should be raised under work contract as 157.5 + GST or invoice sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be raised under supervision charges as 7.5 + GST Further i would like to add that 150 is the actual cost my client only adds its fixed percentage of supervision charges. - Reply By Ganeshan Kalyani - The Reply = Your client is acting as a 'pure agent'. Invoice may be raised as 150 no GST, 7.5 with GST. - Reply By Shilpi Jain - The Reply = If Your client's scope puts him respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsible for the construction and his scope is construction, then even if he sub contracts it will be regarded that he is providing works contract service. - Reply By Ravinesh Sinha - The Reply = Total consideration of Rs 100+50+7.50=157.50. GST is leviable on 157.50. - GST APPLICABILITY ON TRANSACTION WHETHER IT IS SUPERVISION CHARGES OR WORK CONTRACT - Query Started By: - VIPUL JAIN Dated:- 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -6-2022 Goods and Services Tax - GST - Got 3 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
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