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Gst on maintenance work done on completed works contract

196 views 7 replies

Manu S

GST Practitioner

13 Points Joined August 2019

A new client of mine,a works contractor,executed and completed government contract for construction of roads before 1st July 2017. The five year maintenance work is going on and during the financial year 2018 - 19, he received Rs. 500000/- as contract receipt for maintenance work (3rd year maintenance) done during that year. Is GST @ 12% payable on this amount received? TDS @ 2% is deducted by the department.

He also claims that 4% VAT has been already deducted on the original Contract amount.

Replies (7)

Divakar

Student CA Final

11857 Points Joined May 2015

if u booked ur income earlier bbefore gst law....then no gst applicable

Manu S

GST Practitioner

13 Points Joined August 2019

But this 500000 rs. he received during 2018-19 for maintenance work done.

Divakar

Student CA Final

11857 Points Joined May 2015

work completed earlier and for that bill raised earlier and now payment received.,.then no gst applicable

Manu S

GST Practitioner

13 Points Joined August 2019

Ok. thank you for the clarification.

Divakar

Student CA Final

11857 Points Joined May 2015

this is just the case of u realised ur debtors after two years...u book ur income earlier on accrual basis and pay vat and income tax on that....then no question of gst now or income tax

subhagan sreerangam

7059 Points Joined January 2017

Your work completed earlier and for that bill raised earlier and now payment received ,then no GST Applicable .

Manu S

GST Practitioner

13 Points Joined August 2019

@ Subhagan sir. Original work was completed earlier. It's the maintenance (for 5 years) which was carried out during F.Y 2018 19 in respect of which the said amount was received in the same year.