We are into Works Contract . So our major expense is Labour charges. Previously we were deducting their TDS if crosses the limit. From Now onwards do we have to pay GST on the same? Please advise.
Rudrayani Shedjale (Assistant Accountant) (751 Points)
03 July 2017We are into Works Contract . So our major expense is Labour charges. Previously we were deducting their TDS if crosses the limit. From Now onwards do we have to pay GST on the same? Please advise.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160342 Points)
Replied 03 July 2017
Yes, GST would be required to be paid @ 18 ........ forward charge if contractor is registered or under RCM if he is unregistered.
TDS under section 194C of IT act, would be liable to be deducted as and when applicable......
Rudrayani Shedjale
(Assistant Accountant)
(751 Points)
Replied 03 July 2017
Thanks for the information but plese let me know is there limit of 20 lakhs? i.e. if we are paying more than 20lakhs to a single contractor then only we have to pay GST?
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 03 July 2017
Limit of Rs.20 lacs is for the supplier of service. If his aggregate turnover of goods & services all over India under same PAN crosses this limit, he has to get registered under GST. Pl refer brochure on this:
https://www.cbec.gov.in/resources//htdocs-cbec/gst/regn-GST-onlineversion-07june2017.pdf
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
CAclubindia
