Jai Kumar (business) (17 Points)
22 July 2017A government contractor has pending payments with department for construction of school building. no transfer of land takes place here. The bills passed have been deducted with 4% VAT on 31-03-17 and the payment is yet to be done. Now the payment will be released in GST regime and Vat does not exist. What should he do as the government department is also clue less. ?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(171414 Points)
Replied 22 July 2017
"The bills passed have been deducted with 4% VAT on 31-03-17 and the payment is yet to be done."
All pending bills should be released without charging GST....... as VAT was already charged on the construction work....
Jai Kumar
(business)
(17 Points)
Replied 23 July 2017
The system is such that there is long gap between bill passed and actual payment released. The department has charged VAT on paper whereas the deducted vat is deposited when actual payment happens. Now the actual payment happens in say November 2017. So what should be done to that payment as VAT would have cease to exist by then ? Should we deposit advance VAT on the bil ?
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Course on Foreign Exchange Management Act (FEMA)(without recording)
CAclubindia
