CCI Online Learning
What do you want to learn today?
     
CIBIL

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Confusion in gst to be paid by a building contractor


Bharath Kumar C (Proprietor)     01 February 2019

Bharath Kumar C
Proprietor 
 21 points

| My Other Post

Hi Experts,

I am seeking some clarity on GST to be paid by a building contractor, if he wishes to construct a building to some client who owns the land.

Suppose the contractor agrees to an amount of 1.5 crore rupees for the building including gst for all materials, labour and execution.

contractor bought goods for 70lacs including gst (Steel 18% and cement 28%), labour 35 lacs to labourers directly. 

his expenses, fuel etc - 10lacs.

total - 70+35+10 = 115 lacs in that he already paid around 16lacs as gst for procuring cement and steel.

according to my understanding, his gst liability = 18% of 150lacs = 27 lacs.

total liability = 27lacs - 16 lacs already paid during material purchase = 11lacs. 

profit made is 150lacs - 115lacs - 11lacs(gst to be paid) = 24 lacs.

final profit 24lacs - income tax = X

or 

total liability = 27lacs + 16 lacs = 43 lacs 

profit made is 150lacs - 115lacs  - 27lacs = 8 lacs.

final profit 8 lacs - income tax = Y

Please let me know if X or Y is right in calculation.

Kindly help me in this regard.

avater

Dhirajlal Rambhia (KVO Merau Kutchh)     02 February 2019

Dhirajlal Rambhia
KVO Merau Kutchh 
 9222 likes  93315 points

View Profile | My Other Post

As such X for understanding the problem, but GST liability will be over 150*100/118  i.e. 22.88 L


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Related Threads


Loading

Popular Discussion


view more »



Trending Tags
gst return
VAT
tcs
gst council meeting
shares stock
unified portal
traces
aatmanirbhar bharat
ca exams
income tax
gst
ca rankholder interview
ca students
Others
pm cares fund
Info Technology
Union Budget
icsi
companies act 2013
Professional Resource
cbdt
icai
csr
ca exams may 2020
gst portal
mca

GST Live Class    |    x