Dear Sir/Madam,
We had received the contract in the year of 2011 from state government "Sector development like roads,Electrical,Public health & Horticulture works including 5 years maintenance". In the contract clause there is clearly mentioned that the rates quoted by the contractor shall be deemed to be inclusive of all the taxes,levies,etc..including their variations as notified by the concerned authority from time to time and also of all new taxes and levies that may be imposed that the contractor will have to pay for the performance of this contract.
Now My questions are here under:-
1.Now our project is under completion ,after the post GST it's a huge impact of taxes as per the GST law is concern.Since we have paid VAT,ED earlier,we have submitted impact analysis to our client,the difference taxes who will be responsible ? Our client is not paid GST to us . (Note Service tax exempted to the Project).This project is developed only for public. Please suggest how much GST will be applicable and who is paid ?
2.Since the Contact is one and in Operation & Maintenance part is less then 25% materials for which GST is exempted,should we avail this facility ?
Any one please answer the above questions...
Regards,
Prashant.
CAclubindia
