GST Treatment: Construction Business: Difference between revisions

Revision as of 04:11, 12 December 2015

GST - Construction Business

This guide will teach you the way to enter the tax invoice to the Developer from Main Contractor.

We have to look into and show the following items in order to calculate the GST amount in the Tax Invoice:

Certified value - Progress claim value certified by Architect.
Retention Amount - the amount of progress payment which is not paid until the conditions specified in the contract for the payment of such amounts have been met or until defects have been rectified.
Progress payment

For example,

Progress Payment - 1st interim certificate	Amount (Rm)	Calculation
Value of material and works (A1)	30,000.00
Less: Retention Sum (B1)	1,500.00	Rm30,000 x 5%
Amount Paid (excl GST)	28,500.00	A1 - B1

Progress Payment - 1st interim certificate	Amount (Rm)	Calculation
Value of material and works (A1)	30,000.00
Less: Retention Sum (B1)	1,500.00	Rm30,000 x 5%
Amount Paid (excl GST)	28,500.00	A1 - B1

[Sales | Invoice...]

1. Create the oversea supplier invoice at Purchase Invoice.

2. Select the tax code “IM-0”. Tax amount = 0.00

Date	Initiated by	Remarks
12 December 2015	Loo	Initial document.

@@ Line 19: / Line 19: @@
 |-
 | Amount Paid (excl GST) || style="text-align:right;"| 28,500.00 || A1 - B1
+|- GST Amount || style="text-align:right;"| 1,710.00 || Rm28,500 x 6% (SR)
+|}
+<br />
+::::{| class="wikitable"
+|-
+! Progress Payment - 1st interim certificate !! style="text-align:right;"| Amount (Rm) !! Calculation
+|-
+| Value of material and works (A1)|| style="text-align:right;"| 30,000.00 ||
+|-
+| Less: Retention Sum (B1) || style="text-align:right;"| 1,500.00 || Rm30,000 x 5%
+|-
+| Amount Paid (excl GST) || style="text-align:right;"| 28,500.00 || A1 - B1
+|- GST Amount || style="text-align:right;"| 1,710.00 || Rm28,500 x 6% (SR)
 |}