WORKS CONTRACT

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....ORKS CONTRACT<br> Query (Issue) Started By: - RV PERUMAL Dated:- 22-3-2021 Last Reply Date:- 22-3-2021 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>A PRIVATE LTD COMPANY&#39;S DIRECTOR CONSTRUCTED HIS RESIDENCE HOUSE. THE LAND, PLAN APPROVAL AND EVERY THING IN THE NAME OF HIM. BUT THE CONTRACTOR&#39;S PAYMENT IS MADE BY COMPANY. HENCE, GST DEPARTMENT ASKED TO PAY GST @ 18% INSTEAD OF 12....

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....%. WHETHER IS IT CORRECT OR NOT. PLEASE GUIDE Reply By KASTURI SETHI: The Reply: In this scenario, a person who makes payment for service is de facto service receiver. Hence the department&#39;s stand is correct. There are other factors who is liable to pay tax but here the company is in the forefront. Reply By RV PERUMAL: The Reply: THANK YOU VERY MUCH SIR. HERE, THE PAYMENT MADE BY THE COMP....

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....ANY ON BEHALF OF THE DIRECTOR AND NOT REFLECTED IN THE COMPANY&#39;S BOOK AS A BUILDING OR SOME OTHERS. THE COMPANY ACCOUNTED THE PAYMENT AS A LOAN TO DIRECTOR OR DIRECTOR&#39;S CURRENT ACCOUNT. NOW, WHAT&#39;S THE TAX RATE Reply By KASTURI SETHI: The Reply: Sh.R.V. Perumal Ji, With reference to your above query at serial no.2 dated 22.3.21, you have not disclosed full facts at the first instan....

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....ce. The following facts are in favour of the company :- (i) Payment made for and on behalf of Director (ii) Not accounting for the payments in the company&#39;s account as receivrer of construction service. (iii) Loan Suppose A intends to make payment on behalf of B , B can do so. There is no such restriction in CGST Act. Liability rests with B. Regarding rate of tax in this scenario, pl. ....

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....go through serial no.11 of Notification No.12/17-CT(R) dated 28.6.17 as amended up to 16.10.20 Reply By ABHISHEK TRIPATHI: The Reply: As KS Sir stated - Notification S No. 11- Heading 9954 - Services by way of pure labour contracts of construction, erection, commissioning, or installation of original works pertaining to a single residential unit otherwise than as a part of a residential comple....

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....x. - Nil- Nil<br> Discussion Forum - Knowledge Sharing ....