Dear Sir,
Contractor give a small portion of a Road project to a sub contractor to complete. As per agreement material supply to Sub contractor by the Contractor/company wiil be deducted from bill. If sub contractor billed to contractor of Rs 100000.00 and Contractor supply of Material of Rs 20000.00 to Sub contractor. In this case how Sub contractor will bill to Contractor.
100000.00 + 12000.00 (GST) =112000.00 ( A separate sale entry including GST to be made against material issue )
or 100000.00 - 20000(Material) + 9600 = 89600.00
which is correct ?
CAclubindia
