Taxability of interest on awarded cost

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keshika bansal

keshika bansal (Querist)
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30 March 2018 My query is whether gst is to be paid on interest on awarded cost?

Guest

Guest (Expert)

31 March 2018 Can you please elaborate what is awarded cost

keshika bansal

keshika bansal (Querist)
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31 March 2018 Cost which court decide in a case

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Guest

Guest (Expert)

01 April 2018 In above case GST is not applicable .GST is payable on interest amount where such interest is received for delayed payment of any consideration against any supply.Services provided by court is not considered as supply and thus no GST is payable on interest on awarded cost.

keshika bansal

keshika bansal (Querist)
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01 April 2018 But case was related to service provided by one contractor to another contractor on which court decided cost to be bear by one contractor and interest is also on that cost for such delay payment as case was pending in court

Guest

Guest (Expert)

01 April 2018 Ok .If amount paid by one contractor to other contractor is taxable to GST then interest will also be taxable to GST.

keshika bansal

keshika bansal (Querist)
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02 April 2018 As now my query is as service was provided in earlier tax Regime but contractor has received contract amount with interest in current tax regime as case is completed in current tax regime I.e. GST. Whether gst is paid on such amount received including interest or old tax will be applicable on whole value including interest. Or as interest is received today so tax on interest will be paid in current tax regime and cost amount will be taxed in old tax regime.

Guest

Guest (Expert)

02 April 2018 As Services was provided earlier then no tax will be Payable in GST era of awarded cost and even no GST is payable on interest as Supply is not made in GST.

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