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Works contract & Stds

Sourav Aditya (Accountant) (21 Points)

03 June 2017

Sir, we do business in west Bengal. Our Business mostly works contract (electrical goods repair, maintenance, installation) and party provide the stds certificate for that. So, what will be ours invoicing after gst.

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4 Replies

CA. Bhawana Joshi (Co-Founder GST Insights ) (81 Points)
Replied 03 June 2017

Hi Sourav,

Under GST the entire amount under Works Contract will be treated as deemed service. The standard rate under GST for works contract will be 12% .

There is no criteria of abatement under GST for work's contract, therefore the entire work contract is categorized under service accounting code of 440410.

Therefore 100% liability to pay tax will be of Service Provider i.e. in this case the liability to deposit tax under Works contract is on you if you provide Work Contract Service.

Do let us know if have any further ask.

Best,

Bhawana

https://www.gst-insights.com

1 Like

Govind JK Kolappan (General Manager Finance) (64 Points)
Replied 03 June 2017

very informative

Thanks

Govind

Sam Desa (21 Points)
Replied 19 June 2017

Sir
i also having contract work of new and old office renovation and interiors works like aluminium doors,partition new ceiling etc. so how much tax applicable in gst. in this type of contract.