Works contract
This query is : Resolved
27 January 2014
Construction of building in which amount will be received on stage by stage. Here my question is
1) Point of taxation ?
2) Point of invoicing?
3) How the value will be arrived in each stage?
4) Is it necessary to raise the invoice in each stage i.e before completion of service in fully?invoice format for construction service?
5) Method for valuation? which method is preferable?
please reply to me in advance
1) Point of taxation ?
2) Point of invoicing?
3) How the value will be arrived in each stage?
4) Is it necessary to raise the invoice in each stage i.e before completion of service in fully?invoice format for construction service?
5) Method for valuation? which method is preferable?
please reply to me in advance
28 January 2014
Mr Sudalaimani,
Here many points raised by you are of just mutual agreement only.The point of taxation is the moment of receiving consideration(payment) for the work done by a contractor.Point of invoicing is as per agreed terms e.g. 25% on completing foundation,next 25% on construction of walls etc.Or some percentage of the total amount can be received as advance to be adjusted against the final invoice.In government works invoicing is done at each stage, called as RA bills,and final bill will be on completion as per agreement.Value estimation at each stage is done as per agreement.Invoicing whether at each stage depends upon the agreement.Method of valuation is an engineering subject and there are various formulae.....mjk
Here many points raised by you are of just mutual agreement only.The point of taxation is the moment of receiving consideration(payment) for the work done by a contractor.Point of invoicing is as per agreed terms e.g. 25% on completing foundation,next 25% on construction of walls etc.Or some percentage of the total amount can be received as advance to be adjusted against the final invoice.In government works invoicing is done at each stage, called as RA bills,and final bill will be on completion as per agreement.Value estimation at each stage is done as per agreement.Invoicing whether at each stage depends upon the agreement.Method of valuation is an engineering subject and there are various formulae.....mjk
30 January 2014
Thank you very much sir for your valuable reply
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
- Refund Annexure-B
- Liable to deduct tds and 44ADA
- Sale of Equity shares for Purchase of Residential Property
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- ECO SUPPLY REPORTIONG IN GSTR-1
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- CCFS 2026 Schemed
- Subscription paid to foreign customer
- Two seprate Invoice needed
- 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
- 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
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
