Deduction of gst

This query is : Open

Brijesh (Querist)
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27 November 2018 Dear Experts,

payment of a contractor is stopped due to some dispute between the employer and the contractor for a period of 16 years form 2002 to 2018 now since the court have ordered the employer to make the payment is it legal to deduct GST on the amount which has been accumulated in the form of interest for the period of 16 years?

Kindly give your valuable suggestions.

Thanks in advance.

CA. Jinendra Sethia

CA. Jinendra Sethia (Expert)
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27 November 2018 GST is not a deduction, GST is payable over and above amount of interest. there may be deduction of TDS on the amount payable under section 194A of IT act, But deduction of GST ?? employer have to pay interest and GST thereon to contractor.

Brijesh

Brijesh (Querist)
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28 November 2018 Dear sir,

Thank You, Sir. for your Suggestion. Kindly clarify me this the original payment which was stopped was Rs. 2.00 Lacs Over the period of time interest got accumulated on the Payment Rs.6.00 Lacs now this GST will be levied on Rs. 2.00 Lacs or the total amount which now they have to pay ie. 8.00 Lacs.?

Thanks in Advance.

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