Established in the year 2016, we are an emerging chartered accountancy firm based in Bengaluru rendering comprehensive professional services which include audit, management consultancy, tax consultancy, accounting services and secretarial services.

Quote of the Day: "Greatness comes by doing a few small and smart things each and every day... it comes from taking little steps, consistently"

Saturday, 9 September 2017

Decoding GST on Works Contract

Under GST Regime, works contract will be treated as service and tax would be charged accordingly (not as goods or part goods/part services). This treatment of works contract as service and not as supply of goods will bring in much needed clarification to the works contracts.
Composition Scheme is not Available.
Composition scheme is not available to works contractors as it is treated as service under GST. Composition scheme is only available to suppliers of goods. This will be a big blow to the small sub-contractors who cannot opt for composition scheme. They will be forced to register for normal taxation scheme increasing their compliance's and costs.
GST Rates?
Refer recent notification 20/2017-Central Tax (Rate) ,dt. 22-08-2017
ITC credit on Works Contract?
ITC credit in case of works contract is one of the things which is still not completely resolved under GST regime. As per section 17(5), the input tax credit on works contract services when supplied for construction of an immovable property (other than plant and machinery) is not available except where it is an input service for further supply of works contract service. In other words, the services availed by the works contractor from sub works contractor is allowed as input tax credit. However, it is easier said than done, because ITC rules on works contract is still not clear and department clarification is much needed in this regard.
For Simple Secure GST Compliance contact us at: info@preethamandco.com or Call us at 9900397777

2 comments:

  1. Great share!

    Loved all that you shared, and you are right, one cannot deny the power of Google. I simply love it and am part of a number of
    communities too. The point you mention in your post sand blasting machine manufacturer in India that are very useful for me. I understand the way of the attractive to the customer with the products.

    Keep it works and share with us your latest information. For more Information or any help then visit now at Sand Blasting Machine, Shot Blasting Machine, Sand Blasting Machine for Sale, Sand Blasting Machine Manufacturer, and Small Sand Blasting Machine.

    They are similar to small communities that you own - check them out if you haven't already.It's all got a lot better than before!t.

    Thanks for sharing. Have a nice week ahead.

    Visit at : www.blaster.co.in

    Also Check
    Portable Sand Blasting Machine
    Portable Shot Blasting Machine
    Shot Blasting Machine
    Portable Grit Blasting Machine
    Grit Blasting Machine


    Regards,
    Purnima Sharma.

    ReplyDelete
  2. Great share!

    I love this bucket list and you know you're right. sand blasting machine manufacturer. We all have the same amount of hours in a day so put them to good use. We all have to start somewhere and your plan is perfect. I understand the way of the attractive to the customer with the products sand blasting machine.

    Sand blasting machines like shot blasting machine, sand blasting machine, and grit blasting machines, Wood Working Machinery Dust Extraction unit, Abrasive Blasting Media and various others. Keep it works and share with us your latest information. My time will come but I know I'm on the right path.

    They are similar to small communities that you own - check them out if you haven't already. It's all got a lot better than before!t. Value that list of thousands but I'll get there.

    Thanks for sharing. Have a nice week ahead.
    Visit at : www.gritblast.co.in

    Also check
    portable shot blasting machine
    portable sand blasting machine
    sand blasting cabinet
    grit blasting cabinet
    shot blasting cabinet

    Regards,
    Ankit Manawat.

    ReplyDelete