3. Purchase of Works Contract Services under GST in Tally.ERP9
Works contract, by definition, is an agreement to carry out for cash, deferred payment, or other valuable consideration - building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property.
Under GST, works contract purely as a service and GST rate has been fixed at 18%.
Under the GST Regime , input tax credit is not available for works contract services when supplied for construction of immovable property (excluding plant and machinery), except that contractor can avail the ITC in respect of services availed from the sub-contractor.
You can record a material out/delivery note voucher if you have sent material to works contractor. Then record a purchase invoice when you receive the service. Under GST you need to report only the purchase invoice for works contract.
Create a Purchase Ledger (i.e. Fabrication) for Purchase of Works Contract Services under GST in Tally.ERP9
Ensure the purchase ledger has details as shown below:
1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase .
Supplier invoice no.: Displays the sales invoice no. of the supplying party.
Date: Displays the date on which the sales invoice was passed by the supplier.
2. In Party A/c name , select the supplier's ledger.
3. Select the purchase ledger and enter the amount.
4. Select the GST ledgers (central and state, or integrated) based on the state selected for the supplier ledger.
You can view the tax details by clicking A : Tax Analysis . Click F1 : Detailed to view the tax break-up.