petty contract
This query is : Resolved
26 December 2017
hello sir madam actually kisi party ka work petty contract mai h us time vat mai contract covered tha ab GSt aa gya h to kya ab amt including GST hoga ki separate collect krna padega.
05 January 2018
petty contract (Open)
komal  26 December 2017
hello sir madam actually kisi party ka work petty contract mai h us time vat mai contract covered tha ab GSt aa gya h to kya ab amt including GST hoga ki separate collect krna padega.
10 August 2024
In the context of transitioning from VAT to GST, here's how you should handle contracts and invoicing:
### **1. **Understanding GST Applicability**
When GST was introduced (July 1, 2017), it replaced the previous VAT system. Contracts entered into before the implementation of GST might still have been governed by VAT if they were completed before the GST implementation date.
### **2. **Existing Contracts Under VAT**
For contracts that were finalized under VAT before GST came into effect, the following points should be considered:
- **Execution of Contract:** If the contract was executed and VAT was charged, you generally should not alter the terms of the contract retroactively due to GST implementation. The terms of the contract, including the pricing, should ideally remain as they were under VAT.
- **GST Applicability:** If the work is continuing or additional work is done after the GST implementation date, you need to apply GST on any new invoices or payments related to the work performed after July 1, 2017.
### **3. **Handling Payments and Invoicing**
- **Amount Including GST:** For any work or services provided after the GST implementation date, you must charge GST separately on top of the amount agreed upon.
- **Separate GST Collection:** GST should be separately mentioned in the invoice, not included in the base amount. This ensures transparency and compliance with GST regulations.
### **4. **Documentation and Compliance**
- **Issue GST Invoices:** For work done under a contract after GST came into effect, issue GST-compliant invoices including the GST amount separately.
- **Adjustments for Past Work:** If any payments for work done before GST are received after the GST implementation date, ensure that GST is not applied to these payments if the contract was VAT-based.
### **5. **Examples**
- **Contract Before GST:** Suppose you had a contract with a client signed in June 2017 under VAT, and you performed the work in July 2017. In this case, you should have invoiced under VAT for the work done before GST and issue a new invoice with GST for any additional work done after GST came into effect.
- **Ongoing Work:** For any ongoing work that spans the GST implementation date, you should issue invoices with GST for the portion of work completed after July 1, 2017.
### **Summary**
- **Contracts Before GST:** If the contract was signed and executed before GST, it is governed by VAT.
- **Post-GST Work:** For work performed after the GST implementation date, GST should be separately charged and collected.
Ensure compliance by maintaining clear records and issuing GST-compliant invoices for work done post-GST implementation.
### **1. **Understanding GST Applicability**
When GST was introduced (July 1, 2017), it replaced the previous VAT system. Contracts entered into before the implementation of GST might still have been governed by VAT if they were completed before the GST implementation date.
### **2. **Existing Contracts Under VAT**
For contracts that were finalized under VAT before GST came into effect, the following points should be considered:
- **Execution of Contract:** If the contract was executed and VAT was charged, you generally should not alter the terms of the contract retroactively due to GST implementation. The terms of the contract, including the pricing, should ideally remain as they were under VAT.
- **GST Applicability:** If the work is continuing or additional work is done after the GST implementation date, you need to apply GST on any new invoices or payments related to the work performed after July 1, 2017.
### **3. **Handling Payments and Invoicing**
- **Amount Including GST:** For any work or services provided after the GST implementation date, you must charge GST separately on top of the amount agreed upon.
- **Separate GST Collection:** GST should be separately mentioned in the invoice, not included in the base amount. This ensures transparency and compliance with GST regulations.
### **4. **Documentation and Compliance**
- **Issue GST Invoices:** For work done under a contract after GST came into effect, issue GST-compliant invoices including the GST amount separately.
- **Adjustments for Past Work:** If any payments for work done before GST are received after the GST implementation date, ensure that GST is not applied to these payments if the contract was VAT-based.
### **5. **Examples**
- **Contract Before GST:** Suppose you had a contract with a client signed in June 2017 under VAT, and you performed the work in July 2017. In this case, you should have invoiced under VAT for the work done before GST and issue a new invoice with GST for any additional work done after GST came into effect.
- **Ongoing Work:** For any ongoing work that spans the GST implementation date, you should issue invoices with GST for the portion of work completed after July 1, 2017.
### **Summary**
- **Contracts Before GST:** If the contract was signed and executed before GST, it is governed by VAT.
- **Post-GST Work:** For work performed after the GST implementation date, GST should be separately charged and collected.
Ensure compliance by maintaining clear records and issuing GST-compliant invoices for work done post-GST implementation.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Regis.
- Inventory of finished goods
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Disallowance of Section 43B(h) to sez units
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Confusion around Form 26QB fields
- Applicability of Ind As to associate of associate
- Sale of property furniture sale
- Gst input for FY 23-24
- Tax on capital gains revoked us 54f
- Company Incorporation - CA and directors signing from different states
- Filing of Form 10BB instead of Filing Form 10B
- HSN Details in IFF/GSTR-1 & in GSTR 9
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
