Works contract
This query is : Resolved
27 January 2014
Construction of building in which amount will be received on stage by stage. Here my question is
1) Point of taxation ?
2) Point of invoicing?
3) How the value will be arrived in each stage?
4) Is it necessary to raise the invoice in each stage i.e before completion of service in fully?invoice format for construction service?
5) Method for valuation? which method is preferable?
please reply to me in advance
1) Point of taxation ?
2) Point of invoicing?
3) How the value will be arrived in each stage?
4) Is it necessary to raise the invoice in each stage i.e before completion of service in fully?invoice format for construction service?
5) Method for valuation? which method is preferable?
please reply to me in advance
28 January 2014
Mr Sudalaimani,
Here many points raised by you are of just mutual agreement only.The point of taxation is the moment of receiving consideration(payment) for the work done by a contractor.Point of invoicing is as per agreed terms e.g. 25% on completing foundation,next 25% on construction of walls etc.Or some percentage of the total amount can be received as advance to be adjusted against the final invoice.In government works invoicing is done at each stage, called as RA bills,and final bill will be on completion as per agreement.Value estimation at each stage is done as per agreement.Invoicing whether at each stage depends upon the agreement.Method of valuation is an engineering subject and there are various formulae.....mjk
Here many points raised by you are of just mutual agreement only.The point of taxation is the moment of receiving consideration(payment) for the work done by a contractor.Point of invoicing is as per agreed terms e.g. 25% on completing foundation,next 25% on construction of walls etc.Or some percentage of the total amount can be received as advance to be adjusted against the final invoice.In government works invoicing is done at each stage, called as RA bills,and final bill will be on completion as per agreement.Value estimation at each stage is done as per agreement.Invoicing whether at each stage depends upon the agreement.Method of valuation is an engineering subject and there are various formulae.....mjk
30 January 2014
Thank you very much sir for your valuable reply
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