GST \u2014 FAQ relating to DMRC, CPWD and DDA dated 07-08-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
The undersigned is directed to refer to OM dated 14-7-2017 addressed to the Shri Upender Gupta, Commissioner (GST) on the above mentioned subject. The replies\/comments with respect to the queries raised in the said OM are as under :
\nA. DMRC
\n(1) DMRC receiving Bills for the period up to 30-6-2017 on or after 1-7-2017. In many of the cases Liability of RCM is upon DMRC as recipient of services. As per previous law of Service Tax RCM liability of service tax arises at the time of payment of Consideration. In view of the above you are requested to please clarify following :
\n(a) Up to what date we can Deposit RCM under the old regime for the services provided before 30-6-2017?
\n(b) Where to report the RCM deposited in point (a) above? Presently RCM deposited in respective<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ; Manual records were maintained for whole financial year for Common Credit amount. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \nReply : Section 25 of CGST Act, 2017 provides that a person supplying goods or services to get registered in every State from where it is supplying, given that it crosses the threshold exemption limit. If taxable services are being provided, DMRC should get registered. They should refer to the definition of 'location of supplier of services' as contained in section 2(71) of CGST Act, 2017 to ascertain liability of registration in a particular State. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n under GST considering these services are not covered under RCM in GST regime, then is there any tax implication on DMRC as Govt. has not received tax on these services Not by DMRC nor by Contractor? = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n lment. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n tion of the project and (iii) invoicing of the balance fees of Rs. 63 crores. Presently, only Proforma Invoice is being raised for fees and cash flow statement is submitted to show the utilization of funds on quarterly basis to the Client. This office has obtained exemption orders from the Commercial Taxes, UP of UPVAT on the turnover of DMRC, which purely comprises of only engineering consultancy. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n IEC. The Indian partner is clearing the materials from the port by discharging the duties, taxes and other charges and then transporting the same to the site and performing installation, commissioning and maintenance job. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n and DVAT is applicable: Bills (such as advocates and works contract service, for which the vender has raised bills up to 30 June, 2017). Under reverse charge, liability arises at the time of payment only. In such case, what treatment needed in respect of : 1. For Service tax-RCM : whether it will be applicable. 2. For RCM-GST : Whether RCM under GST will be applicable if other conditions satisfy such as advocate services, services\/goods from unregistered dealers. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n hould be paid by 10th of the month succeeding in which deduction was made. DDO should also issue the certificate within five days from the date of deposit into government exchequer. However, the provision of tax deducted at source (section 51 of CGST Act, 2017) has not been made effective as of now. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n r than TDS for income tax is not clear. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" GST \u2014 FAQ relating to DMRC, CPWD and DDA dated 07-08-2017General FAQ on GST – GST Frequently Asked Questions (FAQs)GSTThe undersigned is directed to refer to OM dated 14-7-2017 addressed to the Shri Upender Gupta, Commissioner (GST) on the above mentioned subject. The replies\/comments with respect to the queries raised in the said OM are … Continue reading “GST \u2014 FAQ relating to DMRC, CPWD and DDA dated 07-08-2017”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-15981","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/15981","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15981"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/15981\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n(c) At the year-end amount of Eligible CENVAT calculated multiplying with Ratio, as calculated in point a) above.
\nNote : – All above calculations are done at year end only currently, hence the said amount of CENVAT were shown through revised return of half year ended Mar.' 17.
\nIn view of the above you are requested to please provide the opinion how the credit will be taken in the current GST regime.
\nReply : Provisions for taking input tax credit have been provided in section 17 of the CGST Act, 2017 and in rules 42 and 43 of the CGST Rules, 2017 which may be referred to by DMRC.
\n(3) Presently we were deducting 4% TDS under DVAT\/UPVAT and 5% under HVAT from the bills of works contract. Bills up to 30-6-2017 are under process and will be paid after June, 17. Few bills will also be received after 30-6-2017. In view of th<\/p>\n
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\n(6) In PB, we provide LOA (Letter of acceptance) to party and charge advance Service tax from licensee. It is a manual exercise. Please suggest as to can we treat LOA as billing in GST? If yes than, what will be the format of invoicing in case of GST for LOA payment?
\nReply : In GST also, liability arises on advance receipts. Please see Rule 46 and 50 of CGST Rules, 2017 for information to be contained in Tax Invoice and Receipt voucher respectively.
\n(7) What will be the treatment of Cenvat credit which remains unutil<\/p>\n
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\nScenario (2) – IF DMRC is required to paid RCM on these services as mentioned above then the process may please be explained such as follows :
\n(a) Rate at which RCM is to be paid,
\n(b) Whether it is to be paid under old regime of Service Tax or under New Regime of GST,
\n(c) IF paid where it is to be shown, in which month Return,
\n(d) Any other Tax Compliance and its Implication on DMRC, if any.
\nNote – Many Services which were earlier covered under RCM has not covered under RCM under GST e.g. hiring of Manpower Services, works contract services etc.
\nReply : It may so happen that a particular service was under reverse charge unde<\/p>\n
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\nPara 9 and 2.3 : The funds for execution of project will be released separately in advance for the immediate next 3 months on the basis of the requirement furnished by PD\/N-GN\/DMRC for the ensuing year in advance. However, if there is any saving in the project, for what so reason, such saving would be fully advantage of NMRC.
\nSince the agreement was signed before 1st March, 2016, the fee was not subject to Service Tax.
\nQueries :
\nThe fee is being paid to DMRC @ 6% of Rs. 5135 crores, i.e., Rs. 308 crores and till 30th June, 2017, DMRC has already received Rs. 225 crores. The quarterly advance fee for April-June, 2017, amounting to Rs. 20.91 crores was invoiced to NMRC on 30th June, but the payment is received by this office on 6-7-2017.
\nClarification is sought on whether the Apr.-June, 2017 quarter fees received after the appointed date is subject to GST? If yes, kindly suggest the action to be taken by this office in this regard.
\nReply : If the bills were issued <\/p>\n
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\nReply : Invoicing is an internal matter. However, it has to be ensured that tax invoices are issued in terms of the provisions of service tax and GST. GST is payable in terms of Section 13 of CGST Act, 2017.
\n(12) The scope of system contract awarded by DMRC includes, 'Design, Manufacturing, Supply, Installation, Testing & Commissioning of Escalators for Noida – Greater Noida MRTS Project”. The contract was awarded to a Consortium of Schindler (China) Elevator Company Limited and Schindler India Private Limited, with the Indian member as the lead partner. The contract price is inc<\/p>\n
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\nQuery : Kindly clarify the rate of GST applicable for the above type Contracts. Also, please clarify since the materials are imported separately in the name of DMRC, whether it will be construed as a supply contract and custom duty plus IGST is leviable at 28% slab rate? Further, since the duties and taxes are paid by the Consortium member on the import consignment in the name of DMRC, will the credit of IGST be reflected in DMRC's GSTN account? If yes, how the billing will be done by the Consortium to DMRC.
\nReply : From this description, tax rate cannot be suggested. Depending upon the nature of contract, it can be decided if it is taxable as a composite supply or separate supplies. If DMRC is the importer, credit of IGST on imports can be taken given oth<\/p>\n
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\nReply : As payment are made after 30th June, 2017, it would be covered under GST provisions.
\n(15) DMRC is availing services of doctors in metro Bhawan and other staff quarters. For, which DMRC is paying fixed monthly amount as honorarium. Whether : 1. it will be covered under list of exempted services (point no. 82(i), Health care services by an authorized medical practitioner. 2. If No, GST is applicable for these payment under reverse charge?
\nReply : It is exempt. Please see S. No. 74 of Table to Notificati<\/p>\n
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\n(2) CPWD DDOs are not registered as it is to open from 25th July and DDOs are thinking that after any deduction of GST how to deposit the same and issue the deduction certificate to contractor.
\nReply : The deducted amount should be deposited in the challan prescribed for the purpose (FORM GST PMT-06). A certificate, called FORM GSTR-7A, has also been prescribed for the purpose. However, the provision of tax deducted at source (section 51 of CGST Act, 2017) has not been made effective as of now.
\n(3) There are confusion that if a division (i.e. DDO is operating from one place and working in more than one state then how many registration DDO need.
\nReply : DDO should get<\/p>\n
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\nReply : As the section relating to tax deduction at source (section 51 of CGST Act, 2017) has not been notified, no deduction should be made as of now under GST regime. Once the section is notified, DDOs should start deducting tax at source.
\nC. DDA
\n(1) DDA shall be responsible for deduction of TDS under GST on payments to be made to contractors and shall also collection of GST on certain activities. All the DDOs of DDA have separate TAN number and were individually reeistered under VAT and Service Tax regime. Point for clarification is that since DDA has one vertical business and is only in Delhi, has taken single registration number under PAN. This single GST registration shall suffice or all DDOs will have to get registered separately? Once separate registration is taken by DDOs, will they not be separate identity and cannot trade freely among themselves.
\nReply : Registration under GST is state-wise. So, all the DDOs loc<\/p>\n
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