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TMI BlogGST — FAQ relating to DMRC, CPWD and DDA dated 07-08-2017X X X X Extracts X X X X X X X X Extracts X X X X ..... -2017 (as not deposited up to 30-6-2017). Reply : In terms of GST provisions, a service provider has the option to issue invoice within 30 days from the date of completion of service. So, if invoice is issued and payment is received on or after 1st July, 2017 then it is liable for payment under GST. To the extent, payment on provision of service had been made under the existing laws, it is not taxable under GST. (2) Further presently DMRC were taking Credit on Common Input Services used for Taxable and Non-Taxable/Exempted Services as per rule 6(3) of CENVAT Credit rules in old Regime Proportionately in the following manner : (a) At the year-end ration for taxable turnover w.r.t total turnover was calculated. (b) Manual records were maintained for whole financial year for Common Credit amount. (c) At the year-end amount of Eligible CENVAT calculated multiplying with Ratio, as calculated in point a) above. Note : - All above calculations are done at year end only currently, hence the said amount of CENVAT were shown through revised return of half year ended Mar. 17. In v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arises on advance receipts. Please see Rule 46 and 50 of CGST Rules, 2017 for information to be contained in Tax Invoice and Receipt voucher respectively. (7 ) What will be the treatment of Cenvat credit which remains unutilized on 30-6-2017? Reply : The unutilized credit can be transferred in terms of the transitional provisions contained in section 140 of CGST Act, 2017. (8 ) What will be the treatment of in case of revision or cancellation of invoice on which service tax has been paid by DMRC? Reply : Refund of service tax, if applicable, would be dealt under the service tax provisions only. (9 ) Contractors, mainly Non-Company/Body corporate, has provided services (on which RCM is applicable to DMRC) on or before 30-6-2017 to DMRC. These Contractors has not paid service tax or paid their portion only under partial reverse charge to the Govt. as they are not liable to pay the Service tax or liable to pay only their portion under partial reverse charge as per old regime. Query - The bills for above services are to be received in DMRC after 30-6-2017. Whether DMRC has to pay RCM on these services under old ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f NMRC. Since the agreement was signed before 1st March, 2016, the fee was not subject to Service Tax. Queries : The fee is being paid to DMRC @ 6% of Rs . 5135 crores , i.e., Rs . 308 crores and till 30th June, 2017, DMRC has already received Rs . 225 crores . The quarterly advance fee for April-June, 2017, amounting to Rs . 20.91 crores was invoiced to NMRC on 30th June, but the payment is received by this office on 6-7-2017. Clarification is sought on whether the Apr.-June, 2017 quarter fees received after the appointed date is subject to GST? If yes, kindly suggest the action to be taken by this office in this regard. Reply : If the bills were issued on or before 30th June, 2017, liability arises under service tax. If bill was issued on or after 1st July, 2017, it is taxable under GST. (11 ) As per the contracts awarded on this corridor, it is forecasted that the completion cost of the project could be somewhere around Rs . 4,000 crores . However, DMRC s fees of Rs . 308 crores will be unaltered as a result of any saving ( Para 2.2). This office is treating the fees received as advance revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ointly and serially liable to the DMRC for the obligations under the contract. The foreign member is importing directly in the name of DMRC to the work site with the Bill of Entry reflecting DMRC IEC. The Indian partner is clearing the materials from the port by discharging the duties, taxes and other charges and then transporting the same to the site and performing installation, commissioning and maintenance job. Query : Kindly clarify the rate of GST applicable for the above type Contracts. Also, please clarify since the materials are imported separately in the name of DMRC, whether it will be construed as a supply contract and custom duty plus IGST is leviable at 28% slab rate? Further, since the duties and taxes are paid by the Consortium member on the import consignment in the name of DMRC, will the credit of IGST be reflected in DMRC s GSTN account? If yes, how the billing will be done by the Consortium to DMRC. Reply : From this description, tax rate cannot be suggested. Depending upon the nature of contract, it can be decided if it is taxable as a composite supply or separate supplies. If DMRC is the importer, credit of IGST on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -6-2017. (17 ) DMRC nominate its officers and staff for various knowledge workshops timely. For these seminars, nomination fee per candidate nominated is paid by DMRC. After. DMRC regime what will be tax implication in these cases. Reply : Question is not clear whether it is paid to the nominated candidate or to the person who conducts the workshop. B. CPWD (1 ) currently DDOs are thinking what to deduct from Running Bills as many taxes are subsumed from 1st July. Reply : DDOs are required to deduct tax at the rate of 1% for CGST and 1% for SGST (2% in case of IGST) at the time of payment to the supplier where the contract value exceeds 2.5 lakh. The amount deducted should be paid by 10th of the month succeeding in which deduction was made. DDO should also issue the certificate within five days from the date of deposit into government exchequer. However, the provision of tax deducted at source (section 51 of CGST Act, 2017) has not been made effective as of now. (2 ) CPWD DDOs are not registered as it is to open from 25th July and DDOs are thinking that after any deduction of GST how to deposit the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tration shall suffice or all DDOs will have to get registered separately? Once separate registration is taken by DDOs, will they not be separate identity and cannot trade freely among themselves. Reply : Registration under GST is state-wise. So, all the DDOs located in one State can have one registration for the particular State. (2 ) DDA issues hundreds of imprests to its various officials for petty purchases and petty emergent works. Nature of expenditure is such that majority of the transactions could be with unregistered entities. Shall all such expenditures incurred on daily basis by hundreds of officials in different units attract reverse charges? Separate accounting of such expenditure may be very cumbersome. Reply : Liability under reverse charge for supplies from an unregistered person can be discharged on consolidated basis. It is very likely that all such expenditures would be done with proper receipt. So, accounting of small purchases is feasible. (3 ) In the ongoing contracts there is a provision that service charges paid by the contractors shall be reimbursed by DDA at the prevailing rate on production of proof o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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