Loading...

Departments Asked To Rework Contract Value

Loading...

The Tamil Nadu government has asked the various departments and State public sector undertakings to rework their contract value taking GST into account.

Prior to GST, the contract amount included customs and excise duty, and Value Added Taxes (which is subsumed under GST now), said a GO from the State’s finance department.

Loading...

It also noted that the Tamil Nadu Transparency in Tenders Rules, 2000, requires that financial bid quoted should be inclusive of taxes and duties. “The new GST laws require that all invoices should show the value of supply and GST separately,” it added.

The finance department said one of the key issues was to estimate the value of subsumed tax carefully and as accurately as possible to arrive at the contract value.

The revised contract value would be arrived at by taking the original contracted value and deducting the subsumed tax under GST. To that the new GST rates would be added.

The procuring entities will negotiate existing agreements with contractors and enter into supplementary agreements. The procuring entities shall make payment of final bills accordingly, the department’s note said.

“The clarifications provided by the government of Tamil Nadu would ensure that the appropriate tax is collected and paid on government contracts and there is no room for any profiteering by contractors who have already been awarded tax inclusive contracts,” M.S.Mani, Partner GST, Deloitte India, said.


Trending Hairstyles

Source : http://www.thehindu.com/news/national/tamil-nadu/departments-asked-to-rework-contract-value/article19863378.ece

Departments asked to rework contract value
Time for the Manny Machado watch to go into overdrive in Chicago
Commissioners unwilling to pay outside firm $138,000 to create Gage Park plan
Watchdog: State Department can’t fully account for $6B worth of contracts
Smart money: Bears potential cap casualties to monitor after 2018
Emails: CPW asked PTC to annex into city limits for rate breaks
Coming Soon to Your Hotel: The Integrated Revenue Generation Team - By Max Starkov and Scott Dahl
Panel OKs pact to look at reducing state offices
Construction in Philadelphia schools may lead to hazardous levels of lead, carbon monoxide, silica for students, teachers