[ad_1]
The consulting and services sector has urged the Centre to re-look at the Goods and Services Tax (GST) collection regime.
“At present, the service sector and consultants pay their taxes as conscientious professionals and firms and feel utterly frustrated as GST has to be deposited on accrual and due basis. The GST have to be deposited within 30 days of raising of Invoice and not on receipt of dues from the customer/client, “said K.K. Kapila, former president Consulting Engineers Association of India (CEAI) and past co-chair FICCI Infra committee.
Consulting engineering companies are engaged in the service sector and totally dependent for survival on timely receipt of dues from the clients.
He said that banks are reluctant to advance finance to professionals, and in any case are averse to funding payment/deposit of GST and Income Tax.
“Delay in receipt of dues from clients adversely affects these organisations’ financial situation leading to delays in deposit of GST. Any delay in deposit of GST leads to threats of cancellation of GST Registration and/or Prosecution, etc. This is despite the fact that the service sector pays interest on delayed deposit of GST in spite of its tight Liquidity problem.”
“The service sector urges the government to make changes so that GST is paid by the Service Receiver (Client) directly instead of a provider on the similar lines as TDS. If not, the service sector should be allowed to pay GST within 30 days of receipt of payment from the client. This was the practice in vogue prior to 2012 when the present dispensation was introduced,” Kapila added.
He said that otherwise the service provider may be given a timeline of 180 days from raising the invoice to deposit the GST, in line with receipt of payments from the client.
The client may be mandated to make the payment along with the GST to the provider, with a copy to the concerned GST office.
–IANS
kvm/ksk/
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
[ad_2]
Source link
