Usages of mobilisation advance in construction
This query is : Resolved
05 January 2022
Hi sir. We are facing a typical case in statement received from contractor on utilisation of mobilisation advance. Client has provided interest free MA to Contractor for the costs of mobilisation of resources.
The WO was given in Sept 2019 and MA was released in stages in Oct 2019 and Aug 2020. However, the works were delayed due to COVID pandemic, plot handover by Client etc. The works commenced in Jul'20 post receipt of all clearances and contractor started receiving payment for work done through RA Bills from Nov'20 onwards.
Now, contractor was asked to submit a detailed utilisation statement of MA released by Client. In the MA utilisation statement submitted by contractor, (i) the salary of staffs during COVID (ii) a fixed amount for each month as HO overhead from Apr-20 to till date (iii) The premium paid on mobilisation BG / CAR policy etc.
Can the salary, HO overhead , premiums as claimed by Agency can be considered as a part of the MA utilisation statement?
The WO was given in Sept 2019 and MA was released in stages in Oct 2019 and Aug 2020. However, the works were delayed due to COVID pandemic, plot handover by Client etc. The works commenced in Jul'20 post receipt of all clearances and contractor started receiving payment for work done through RA Bills from Nov'20 onwards.
Now, contractor was asked to submit a detailed utilisation statement of MA released by Client. In the MA utilisation statement submitted by contractor, (i) the salary of staffs during COVID (ii) a fixed amount for each month as HO overhead from Apr-20 to till date (iii) The premium paid on mobilisation BG / CAR policy etc.
Can the salary, HO overhead , premiums as claimed by Agency can be considered as a part of the MA utilisation statement?
05 January 2022
No, such expenses not related to mobilisation of resources.
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
- ITR 2 Short Term gain & Long term gain
- Itr 1 processing
- Reporting Income under Section 44ADA
- Off Market debit and credit transaction
- ITR returnFY25-26
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR 1: Details for showing Exempt Income
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR validation error - Balance sheet is not filled
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
