Invoices on behalf of sub-contractor

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This query is : Resolved

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GTA Pvt Ltd is generating invoices for sub-contractors based on trip details rather than receiving them directly. This system is permissible provided the sub-contractors agree to the trip details, furnish necessary tax information (GST, TIN, PAN), and GTA Pvt Ltd correctly deducts TDS. It's crucial to ensure sub-contractors fulfil their GST and Income Tax return obligations.

sankar ponnan

sankar ponnan (Querist)
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21 April 2021 Sir / Mam
We are GTA Pvt Ltd. We are generating the sub-contract bills in our software on the basis of Trip details instead of receiving the bills from sub-contractor. The software for GTA has been designed like that.

Besides, We are helping the sub-contractors as they do not know how to issue invoice on their trips.

How ever, We are deducting TDS in right manner.

Can we follow this system Or Is there any compulsion to receive the bills from sub-contractors?

Guide me plz
thanks in adv

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 April 2021 You can follow the system and obtain signature from sub contractors.

Rohit A Kadam

Rohit A Kadam (Expert)
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24 April 2021 There are many companies that follow self-billing based on inputs received from the vendors or suppliers in terms of time sheets and trip details etc. There is no problem in using the software for self-generating the bills in the name of the vendor, however the vendor must agree on the trip details captured in the invoicing and also furnish the GST, TIN, PAN etc to raise a valid invoice in their name.

Further while making payment since you are deducting appropriate TDS it is valid.
It is also important that you ensure the Vendors to file the GST Returns and Income Tax returns.

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