Gst on contractors
This query is : Resolved
13 June 2018
Hi Sir /Madam..
Can someone solve my query.
What about the GST for contractors? For example, a contractor for a building received 25 Lakhs from his owner for a month. Out of it he pays Rs. 22 Lakhs for Labour. The balance 3 Lakhs is his share of income. Whether he is liable to charge and collect GST from his owner? If yes, on What amount? What if his Receipts from owner is more than Rs. 20L and Share of Income is lessthan 20L. Whether he is liable for registration?
Waiting for the clarification. Thanking you.
Can someone solve my query.
What about the GST for contractors? For example, a contractor for a building received 25 Lakhs from his owner for a month. Out of it he pays Rs. 22 Lakhs for Labour. The balance 3 Lakhs is his share of income. Whether he is liable to charge and collect GST from his owner? If yes, on What amount? What if his Receipts from owner is more than Rs. 20L and Share of Income is lessthan 20L. Whether he is liable for registration?
Waiting for the clarification. Thanking you.
13 June 2018
Some clarity is required for your question.
Whether it is JDA agreement? revenue sharing or flat sharing?
or the contractor in this case is just providing construction services to the land owner and receiving consideration?
Whether it is JDA agreement? revenue sharing or flat sharing?
or the contractor in this case is just providing construction services to the land owner and receiving consideration?
Message likes :
1 times
14 June 2018
Hi Mam..
Thanks for the reply.
There is no any JDA between them. contractor is just providing construction services to the land owner and receiving consideration. Let me know the GST applicability.
Thanks for the reply.
There is no any JDA between them. contractor is just providing construction services to the land owner and receiving consideration. Let me know the GST applicability.
14 June 2018
Supply of construction services are considered as supply of service. The tax has to be paid on full value of consideration received from the land owner. In the given example the consideration received for construction services is Rs.25 Lakhs. Contractor has to issue tax invoice as supply of service and charge GST on 25 Lakhs.
The rate of tax depends on the nature of construction. Please refer Notification No.11/2017-Central tax(rate) as amended.
Link for said notification: http://www.cbic.gov.in/htdocs-cbec/gst/Consolidated_notification_CGST_11.pdf.
Further, there are certain exemption available in case of pure labour contracts. refer Notification No.12/2017-Central tax (rate) as amended.
Link for said notification: http://www.cbic.gov.in/htdocs-cbec/gst/Consolidated_notification_CGST_12.pdf
The rate of tax depends on the nature of construction. Please refer Notification No.11/2017-Central tax(rate) as amended.
Link for said notification: http://www.cbic.gov.in/htdocs-cbec/gst/Consolidated_notification_CGST_11.pdf.
Further, there are certain exemption available in case of pure labour contracts. refer Notification No.12/2017-Central tax (rate) as amended.
Link for said notification: http://www.cbic.gov.in/htdocs-cbec/gst/Consolidated_notification_CGST_12.pdf
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- FORM 26A APPLICABILITY
- Copyright software
- SFT Cash Deposit in Current Account
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
