Gst not deposited by vendor, how to claim
Kamal Pal (Dy. Mgr. Accounts) (128 Points)
23 March 2018Kamal Pal (Dy. Mgr. Accounts) (128 Points)
23 March 2018
Kapil Pathak
(CA)
(46 Points)
Replied 23 March 2018
Kamal Pal
(Dy. Mgr. Accounts)
(128 Points)
Replied 23 March 2018
Thanks for replying Kapil, Just for further confirmation - If Y bills to X,
1. say it's 10000 maintenance + 18% Gst = 11800/- total invoice value then Y should bill 11800/- or 11800+Gst.
2. If X is paying the rental charges to Y every month and deduction of 10% TDS applies on rent, then while paying maintenance charges X should deduct 2% under 194C or 10% on 194I or 194J, which type of deduction will apply here.
I am asking this query on behalf of X and Y the landlord have raised this concern.
Kapil Pathak
(CA)
(46 Points)
Replied 23 March 2018
1. If Y is taking ITC of 1800, then Y would raise an invoice of 10,000 + profit margin if any . In case Y is not taking any ITC then Y would raise an invoice of 11,800 and GST won't be applicable on 11,800 since it is just a reimbursement provided Y doesn't have any profit margin on maintenace charges. However to avoid any litigation Y should take ITC of maintenace charges and charge GST on maintenance charges received from X.
2. TDS is not deductible on reimbursements. Since Y does not have any profit margin so X won't deduct TDS on maintenance charges but Y would deduct under 194C before making payment to Z. And if there is profit margin then on maintenance charges , TDS would be duducted under section 194 C on maintenance charges.
Kamal Pal
(Dy. Mgr. Accounts)
(128 Points)
Replied 23 March 2018
Thanks a lot Kapil for clarification