TaxTMI 
TaxTMI 
works contractor road construction under BOT agreement with govt TDS deduction applicable or required discharge GST by dealer or as government not paying for contract requires TDS by department clarification required.
works contractor road construction under BOT agreement with govt TDS deduction applicable or required discharge GST by RP
01 Jul 2021 
4 Replies 
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TDS on works contracts may depend on the payer; BOT toll concessionaires typically mean no government TDS.
Applicability of TDS turns on the payer: if the government pays, TDS will be deducted; in a BOT toll concession where the concessionaire funds construction and recovers costs via tolls, the government does not pay and so is not the deductor. Regarding GST, one respondent referenced classification/exemption (9967) suggesting the BOT toll works contract may be exempt or subject to specific GST treatment; parties must therefore assess GST liability against that classification. (AI Summary)
Applicability of TDS turns on the payer: if the government pays, TDS will be deducted; in a BOT toll concession where the concessionaire funds construction and recovers costs via tolls, the government does not pay and so is not the deductor. Regarding GST, one respondent referenced classification/exemption (9967) suggesting the BOT toll works contract may be exempt or subject to specific GST treatment; parties must therefore assess GST liability against that classification. (AI Summary)