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    65882

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    Sachin Saxena

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    © All Rights Reserved
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    65882

    Uploaded by

    Sachin Saxena
    42 views2 pages

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    42 views2 pages

    65882

    Uploaded by

    Sachin Saxena

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    'r*s- E-91 58977

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    Fi le N o. 1s8/sE(TAsl I cST / 2024/ 3t+ --H Dated I a3lL0/2024

    Offige memorandum
    sub: clarification regarding methodology of Analysis of rates of item

    ln the oM No. 158/SE(TAS)/GST/2024/02-E dated 08.08,2024 it is clearly mentioned that


    multiplying correction factor of 0.973 is applicable for preparing Analysis of Rates of an item
    and estimates only.

    Further, it is clarified that in the existing contracts;

    (i) No multiplying factor to be applied for calculating the gross value of work done.

    (ii) For deducting of GST & Labour Welfare Cess, corresponding amount calculation is to be done as
    per OM dated 08.08.2024.

    ln continuation to oM no. 158/SE(TAS)/GsT/2ozz/zol-n dated go-os-zozz and for more


    clarity following illustration of - Do's and Don,ts are given below:

    lllustration:
    (Al To Do's

    1. Estimated cost put to tender : { 10,00,00,000/_ (Say)


    2. Quoted rate of contractor : 20% below ( Say)
    3. Gross work done : { g,00,00,000/-
    4. Deductions:
    a.GST :t(8,00,00,000/1.1g) xL%o= { 13,55,932/_

    b. Labour Cess : { {(8,00,00,000/(1.01*1.1g)}x !% = \ 6,7L,254/-


    c. Deduction of tncome tax: { {(g,oo,oo,ooo/(1.1g*1.01*1.02)} x2yo =\ L3,L6,L}3/_

    Net Payment to contractor : { (g,00,0o,ooo-13,55 ,932-6,7r,254-13,16,1g3)


    = \7,66,56,63L/-

    (Bl Don't
    (a)

    1. Estimated cost put to tender {


    10,00,00,000/- (Say)
    :
    2. Quoted rate of contractor : 20% below (Say)
    3. Gross work done < 8,00,00,000/-
    4. Deductions
    a. GST :1 (8,00,00,000/1.181 x2% --< L3,55,932/-
    b. La bour Cess :< (8,00,00,000/l.Ol) x 7o/o --<7,92,079/-
    5. Net Payment to contractor :1 (8,00,00,000- 13,55,932-7 ,92,0791 -- <7,78,57,989/

    (b)
    1. ECPT of work i/c Cl : 10 Crore
    2. Rate coated by contractor : 20% below
    3. Total Bross payment : 10 Crore less 2Oo/o below = 8 Crore
    4. Correction factor 0.973x8 Crore i 7.784 Crote

    Deduction (assuming only GST & Labour welfare cess)

    a) GST = 7.784 x 0.02 : 0.1319 Crore


    1.18
    b) L. Cess= 7 .784 x O.Ol : 0.0553 Crore

    1.18 x 1.01

    Net Payment = 7.784-0.1319-0.0653 :7.5858 Crore

    (c)
    1. ECPT of Work i/c Cl : 1.0 Crore
    2. Contractor rate : 20% below
    3. Gross payment : I Crore

    Deduction (assuming only GST & Labour welfare cess)

    a) GST= 8 x0.02 :0.1355

    1.18

    b) L. Cess 0.01
    =8x :0.08

    Net Payment = 8-0.1355 -0.08 :7.7845Uote

    This is issued with approval of competent authority


    #"'*V
    (Govind Hari)
    Executive Engineer (TAS)
    Copy to: (Through CPWD Website)

    All officers of CPWD and PWD Delhi

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