The Ministry of Railways, last week, included the Cost Accountants along with Chartered Accountants to certify worksheet of tax liability before the GST and after GST to be submitted by contractors.
In October 2017, the Railway Board issued a letter regarding neutralizing GST impact on Works Contracts awarded before implementation of GST, it was mandated that the contractor should submit worksheet of tax liability before GST and after GST duly certified by chartered accountant engaged by him.
“The matter has been reviewed in Board’s office and Board (ME & FC) have approved that the worksheet of tax liability before GST and after GST can be certified by Cost Accountants also.”
As per the letter issued in October, the tax liability of the contractor before implementation of GST should be worked out taking into account all stipulated taxes in force before GST implementation i.e, Excise Duty, VAT, including VAT on Excise duty, Entry Tax, octroi duty, prevalent Service Tax etc., irrespective of whether the same were actually paid by agency or not.
