GST ON GOVERNMENT CONTRACTS
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 6-9-2017<\/p>\n
The activities in relation to Government contracts has assumed great importance in the modern times with Government working on major projects either by way of public private partnerships or through technically and professionally qualified contractors.
\nA contract to which the Central Government or a State Government is a party can be called a 'Government Contract' and the party who is required to execute the contract for or on behalf of Government is referred to as a 'Government Contractor'.
\nContract could take any of the form such as fixed-price contracts, cost-reimbursement contracts, fixed price or incentive contracts, indefinite – delivery contracts etc.
\nIn Government contracts, generally, open tenders are floated through sealed bidding and Request For Proposals (RFP) may be invited.
\nGovernment engages contractors, who are generally empanelled with Government or Go<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ed then, the transaction of supply can not be categorized as works contract. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n he appropriate Government = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" GST ON GOVERNMENT CONTRACTSBy: – Dr. Sanjiv Agarwal Goods and Services Tax – GSTDated:- 6-9-2017 The activities in relation to Government contracts has assumed great importance in the modern times with Government working on major projects either by way of public private partnerships or through technically and professionally qualified contractors. A contract to which the … Continue reading “GST ON GOVERNMENT CONTRACTS”<\/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-7614","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7614","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=7614"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7614\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7614"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7614"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7614"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nIn case of supply of goods and services in relation to supply of goods which are movable, the transaction of such nature would either be classified as composite supply or mixed supply for the taxability of which separate provisions have been made in CGST law.
\nThere should be a contract to provide \/ undertake works contract. The activities to
\nbe undertaken under a works contract may be one or more of the following :
\n * Building
\n * Construction
\n * Fabrication
\n * Completion
\n * Erection
\n * Installation
\n * Fitting out
\n * Improvement
\n * Modification
\n * Repair
\n * Maintenance
\n * Renovation,
\n * Alteration, or
\n * Commissioning
\nSuch activities shall be in relation to any immovable property. Works contract including transfer of property in goods, (whether as goods or in some other form) involved in the execution of a works contract shall be treated as supply of service.
\nTax Deduction at Source (TDS)
\nUn<\/p>\n
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\n(e) Any other particulars as may be prescribed.
\nTime limit of furnishing TDS certificate will be 5 days and if any deductor (i.e., Government) fails to furnish the certificate within specified time then such deductor will be liable to pay late fees of INR 100 per day but subject to maximum limit of INR 5000\/-.
\nThe deductee (i.e., contractor) shall claim credit, in his electronic cash ledger, of the tax deducted and reflected in the return of the deductor (i.e., Government) filed under section 39(3), in the prescribed manner. Section 39(3) provides that every registered taxable person required to deduct tax at source shall furnish, in such form and in such manner as may be prescribed, a return, electronically, for the month in which such deductions have been made along with the payment of tax so deducted within ten days after the end of such month.
\nFor any excess or erroneous deduction of TDS, refund can be sought by deductor or deductee under the relevant <\/p>\n
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