Correction Slip No. 9 to DSR-2016 and Correction Slip No. 8 to DAR-2016 - Reg

[Rambabu Jalli]

Dear All,

PFA said correction slips. 

Did you notice ?

At present we add taxes after the CP & OH in the rate analysis / MRJ. But, if you go through the CS8 of DAR-2016, GST is added before the CP & OH allowing CP & OH on GST and cess is added after CP & OH !

with regards,

Rambabu Jalli

Sub-Divisional Engineer (Civil)

BSNL Civil Sub-Division

Nalgonda - Telangana State

Mobile No. +91 9490 144 900

 

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[ee civil tirunelveli]

Sir

In CS8 12% GST is mentioned .But added 14.05% with multiplying factor (0.1405)  on total amount .Reason may be clarified.

EE Civil Tirunelveli

 

THANKS & REGARDS

BHUVANESHAR. R

EE (CIVIL)

BSNL CIVIL DIVISION

TIRUNELVELI

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[Sudheer Agrawal]

My proposition is:

When taxes are not part of contractor's input expenses there is no CP & OH over it. But as  GST is part of contractor's input expenses cpwd is allowing CP & OH over the GST.

However, on face value it looks like we are paying the GST on work done, but the agency has already spent on GST on input goods n services.

[Dilip Patil]

There can't be profit & overhead on taxes..

[Rambabu Jalli]

How they got multiplying factor of 0.1405

Let the Total amount worked out after 1% water charges : W

Let the multiplying factor for GST : f

Total after Water charges              :   w

Add GST  amount                         :   f x w      ... ..................... (Fig A)

Total after GST                   :  w  +  fw

Add CP & OH @ 15%          : 0.15 (w + fw)

Amount after CP & OH       : 1.15 (w+fw)

(Which is inclusive of GST)

GST = 12%

GST applicable amount  : 1.15 (w+ fw)/1.12    (Reverse calculation)

GST amount                    : 0.12 x 1.15 (w +fw)/1.12      which is equal to figure A above

f x w = 0.12 x 1.15 / 1.12 x w(1 + f)

or

f=0.1232 (1+f)

f-0.1232f=0.1232

0.8768f = 0.1232

f= 0.1232/0.8768

f=0.1405

So, the multiplying factor for GST 12% and CP 15% is 0.1405

What we should adopt for 18% GST and 10% CP & OH is as follows :

Let the Total amount worked out after 1% water charges : W

Let the multiplying factor for GST : f

Total after Water charges              :   w

Add GST  amount                         :   f x w      ... ..................... (Fig A)

Total after GST                   :  w  +  fw

Add CP & OH @ 10%          : 0.10 (w + fw)

Amount after CP & OH       : 1.10 (w+fw)

(Which is inclusive of GST)

GST = 18%

GST applicable amount  : 1.10 (w+ fw)/1.18    (Reverse calculation)

GST amount                    : 0.18 x 1.10 (w +fw)/1.18      which is equal to figure A above

f x w = 0.18 x 1.10 / 1.18 x w(1 + f)

or

f=0.1678 (1+f)

f-0.1678f=0.1678

0.8322f = 0.1678

f= 0.1678/0.8322

f=0.2016

Which is applicable for BSNL internal works (other than Quarters)

Regarding answer to Dilip Patil sir,

Basically BSNL does not frame any rules regarding this taxes and their applicability.

We have been being adopted the procedure laid down by CPWD only.

Previously they said CP & OH is not applicable on WCT and Service Tax, so we did not add.

But now they changed the procedure, so we have to.

If any circular is released by our C.O. in this regard, that may be quoted here.

I am attaching a circular of CPWD regarding rate analysis considering GST.

with regards,

Rambabu Jalli

Sub-Divisional Engineer (Civil)

BSNL Civil Sub-Division

Nalgonda - Telangana State

Mobile No. +91 9490 144 900

 

[Dilip Patil]

sir

overheads  &  CP  on  taxes was wrong ab-initio.

regards

dilip patil

Dillip   Patil