A developer engages various contractors for putting up the Building.
A percentage of contractor’s Bill is kept as “retention money” which will be paid after long duration. Similarly some portion of Bill is not paid and kept as “hold” money for defective work which will be paid after defect is set right
Both the above could be outstanding for more than 180 days.
Clarification Sought on GST Implications for Retention and Hold Money in Contractor Payments Over 180 Days A developer retains a portion of contractors' bills as 'retention money,' payable after a long duration, and 'hold money' for defective work, payable once defects are corrected. Both amounts may remain outstanding for over 180 days. The query seeks clarification on the implications of these practices under the Goods and Services Tax (GST) framework. The response from another participant simply asks for clarification on the specific query being raised. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
