Free issue material to sub contractors & gst
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 November 2017
Dear experts,
I need your expert advice on the subject matter. We do EPC projects, wherein some civil works is also involved.We do work for our client for this we used to engaged sub-contractors. We provide material such as TMT & Cement to sub-contractor ,rest materials he used own. Under Services tax regime Sub contractors used to add material cost for computing services tax.
Illustration
Sub contractors certified basic amt ₹ 1000/-
Cost : of Tmt & cement. 500/-
Total taxable amount ₹ 1500/-
Plus :- Service tax on 40% of taxable
amount @ 15% ₹ 90/-
Total bill amount. ₹ 1090/-
Now under GST what will be the impact of GST , whether free issue material to sub contractors be added in the cost of Sub contractors or this provision not applicable.a
I need your expert advice on the subject matter. We do EPC projects, wherein some civil works is also involved.We do work for our client for this we used to engaged sub-contractors. We provide material such as TMT & Cement to sub-contractor ,rest materials he used own. Under Services tax regime Sub contractors used to add material cost for computing services tax.
Illustration
Sub contractors certified basic amt ₹ 1000/-
Cost : of Tmt & cement. 500/-
Total taxable amount ₹ 1500/-
Plus :- Service tax on 40% of taxable
amount @ 15% ₹ 90/-
Total bill amount. ₹ 1090/-
Now under GST what will be the impact of GST , whether free issue material to sub contractors be added in the cost of Sub contractors or this provision not applicable.a
22 November 2017
Free issue material need not be added to cost of sub contractors under GST.
This service tax provision not applicable under GST as abatement provision not applicable under GST.
This service tax provision not applicable under GST as abatement provision not applicable under GST.
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