26 October 2019
ONE OF OUR CLIENT UNDERTAKING CIVIL CONTRACT WITH GOVERNMENT BUILDINGS. THEY HAVE NOT REPORTED THE TURNOVER IN THE GST DUE TO INCOMPLETION THE PROJECT FOR THE FY 2018-19. PAYMENT RECEIVED ONLY BASED ON THE M BOOK. STILL THE PROJECT IS UNDER PROCESS. BUT TDS DEDCUTED BY THE GOVERNMENT DEPARTMENT AT THE TIME OF MAKING THE PAYMENT. HENCE, PLEASE LET ME KNOW HOW TO FILE THE INCOME TAX, WHICH FORM TO BE FILED. KINDLY CLARIFY. THE FY 2018-19 AY IS 2019-20
29 October 2019
You can opt for Project Completion Method or Cash Method. In the former the amount received will be treated as Advance as also TDS deducted will have to be carried forward. Full amount will be treated as Turnover and credit of TDS will be allowed in the year of Completion. Since Work Construction is a Service under GST Act, the amount received should be treated as Turnover in the year you have received the payment. Otherwise the income can be treated as Turnover as and when you receive the payment. TDS will be allowed accordingly.
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