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Consult Construction is a consulting firm with all governance, compliance and IT related services related to the construction sector under one roof.
Focus Areas :-
Corporate GovernanceManagement AuditProject Budgeting and MonitoringIndirect Tax CompliancesCorporate TrainingInformation Technology and Allied ServicesISO Implementation
Core Team
Mr.Sandesh Mundra - Indirect Tax & Management AuditMr.S N Mundra - CompliancesMr.Samir Siddhpuria - VAT Mr.Philip Fernandes - Excise Mr.Dinesh Kavi - Labour LawsMs.Suman Mundra - Management AuditMr.Sanjay Christian - Management AuditMs Pooja Jajwani - IndirectTax Consulting
Authored - Technical Guide on “Business Controls, Monitoring and Internal Audit of Construction Sector”
Authored the technical Guide on “Business Controls, Monitoring and Internal Audit of Construction Sector” issued by ICAI in 2011.
One of our team members has been appointed to the three member National level Direct and Indirect Committee of Builder’s Association of India (BAI) for year 2014. Successful representation to the Ministry of Finance on service tax related issues on behalf of BAI.
Paper on “Accounting Controls in Construction Sector” chosen for publication in January, 2013 issue of National Journal of ICAI.
Paper on "Budgeting Challenges for construction sector" chosen for publication in August 2013 issue of National Journal of ICAI.
Our team members have acted as a speaker on various topics in seminars and study circle meets organised at Mumbai, Ahmedabad, Gandhinagar, Navsari, Jamnagar, Rajkot and Nadiad Branches and study circles of ICAI.
Our team members are Regular Column writers for Indian Construction (Journal of Builder’s association of India), CA Associaton Ahmedabad & web portals like Consult Construction.com & Consolidation of accounts.com
Our Team Achievements
We have pan India Network of VAT Consultants at following locations
CREDIT MAPPING & OPTIMISATION
In terms of the indirect tax provisions (service tax, VAT and excise) a manufacturer or service provider is eligible to claim input tax credit of tax paid on goods and services. The said credit can be utilized for payment of indirect tax liability. Thus the input tax credit is akin to cash on hand which can be used for making tax payments. It is essential that a manufacturer or service provider avails all the eligible input tax credit in terms of the applicable input tax credit provisions and optimizes the same.
• Credit mapping and optimisation cover the following:• Identifying expenses on which tax is paid.• Evaluate expenses on which input tax credit has not been availed.• Evaluate the eligibility in terms of applicable input tax credit provisions.• Put a system in place to ensure optimum input tax credit availment.
STRUCTURING & PLANNING
Setting up a new business or expanding an existing one attracts various indirect taxes. It is observed that indirect tax planning is generally done post execution of the arrangement; thus leading to loss of indirect tax benefits or credit, higher payment of taxes, inefficient indirect tax structure. Therefore it is essential that the transaction is evaluated, structured and planned specifically considering the indirect tax impact:-
• Structuring & Planning would broadly cover the following:• indirect tax analysis on proposed transactions.• Tax neutralization / optimisation advice.• Agreement review/ drafting.• Advice on setting up business in tax efficient manner.• Identify mechanics to optimize tax credits and reduce cascading of
taxes.
MANAGEMENT OF SUB-CONTRACTOR
• We help plan proper contracting arrangement with the sub-contractor, taking care of tax, legal and several control related issues. We also ensure regular reporting formats/ MIS on daily and monthly basis.
PLANNING FOR WITHHOLDING TAXES
• WCT deduction is a very critical issue. It can be planned keeping in mind the relevant provisions of relevant VAT law in mind.
MULTI STATE VAT
• VAT / Sales tax in India is a state level tax• Difficult for a business man to learn and keep track of all statues
applicable under different states • Continuous amendments in the state laws make it very difficult for
multi locational companies to comply within time bound manner with optimum utilizations of available benefits.
• We have dedicated team of experts and proper infrastructure facilities to provide one stop solutions to comply with VAT law across the country. It obviates need to appoint consultant separately for each of the states. It would reduce communication gap, provide expert hand and save time & cost with optimum productivity. Ultimately bringing peace of mind to your taxation department.
HANDLING APPELLATE PROCEEDINGS
Our services cover the following :-
• Representation before all adjudicating Authorities including CESTAT.
• Representation before Advance Ruling Authority.• Representation before Ministry of Finance.• Representation before Settlement Commission for
settlement of cases.• Day-to-day litigation support on notices, summons
etc. received from tax authorities.
Subscribe to our E-Bulletin
email - [email protected]
• VAT and Service Tax updates for the construction / Project sector companies.
• Legislative changes and major case laws under the State VAT Laws and under Service Tax law affecting the construction /Project Sector.
• In addition our brief analysis and comments on the various developments.
SALE VS. WCT NECESSITY OF DISTINCTION
• Different tax rates on sale and works contract. (At times the rates are very beneficial). •Deduction for labour & services available only on \
works contract transactions. (RMC contracts).
• TDS (Income Tax as well as VAT) is deducted only on Works Contracts. (Refund Hassles).
• Different provisions under Excise Duty as well as Service Tax. (Jobwork).
Identification of Transaction
Advice on Structuring of Contract on case to case basis
Nature of Transaction
Pure Labour Contracts
Labour contracts with minor element of material transfer involved
Pure supply contracts with or without an incidental element of service)
Divisible contracts, i.e. where elements of sale of goods and labour can be clearly segregated
Indivisible Contracts, where parties agree for a lumpsum consideration for the entire contract. The sale element and labour elements are not separately identifiable.
Taking care from start till the end
1. TENDER DOCUMENT
2. AGREEMENT / CONTRACT
3. RUNNING BILLS / INVOICES
4. RECORDING IN ACCOUNTS
5. RETURNS UNDER DIFF. ACTS
6. DOCUMENTS PRESERVATION
7. ASSESSMENT / APPEALS
4
ABOVE ALL,
CONDUCT OF THE
PARTIES - TO BE ‐
ACCORDINGLY
Valuation options under Works Contract
• Actual Labour
deduction • Standard Labour
deduction
• Composition
• Impact of exercising an option can be significant.
Our planning takes care of all the taxes, to give the most optimised solution to the client
Present Tax Structure
[ 4 Important Constituents]
Excise Duty
Entry No. 84, List I, Schedule
VII
Taxable Event is Manufacture
Ser vice Tax
Residuary Entry No. 97, List I, Schedule VII
Taxable Event is Provision of
Service
Sales Tax / VAT/ CST
Entry No. 54 of List II ( VAT) and
92A of List I( CST)
Taxable Event is Sale
Customs Duty
Entry No. 83, List I, Schedule
VII
Taxable Event is Import & Export
Entry Tax/ Entertainment
Tax
Entry No. 52&62 List II,Schedule
VII
Taxable Event is Entertainment
& Entry ofGoods
Checklist to understand VAT on Works Contract
We have state specific VAT checklists which help us in giving instant replies to client on any works contract related issues related to
any state of the country
Benefitting from CSTSOI
Seller Outside
High-sea
Seller salesIndia
Outside India
India EPC Contractor
sale exempt from VAT
Project Authority
Transfer of document oftitle
Movement of goods
IndiaEPC Contractor
High sea sale exempt fromVAT
Project Authority
Transfer of document of title took placebefore the goods crossed the customs
frontier
40
From
State 3
Form
C
All rights reserved| |3232CONTRACTS – TAX TAX AND VAT
State 3
VENDOR
In-transit SaleNo CST
PROJECT OWNER
CONTRACTOR
Form C
Form E-I
State 1
PLANNING IN TRANSIT SALES MECHANICS
Physical movement ofgoods
Contractual relation
Endorsementof transportdocument andfresh invoiceon ProjectOwner
State 2
We can help you cope up with the Expected Impact of GST by doing a prescrutiny of your
contracts and suggesting necessary modifications in your ERP
Some of the companies who have attended our workshops on Indirect Taxes
