: Consulting Engineers seek permission to deposit GST & TDS after receipt of payments #FinanceIndia #StockMarketNEWS Consulting Engineers seek permission to deposit GST & TDS after receipt of payments

@StockMarketNEWS Thu 19 Nov, 2020

Posted in: #FinanceIndia #StockMarketNEWS

Consulting Engineers seek permission to deposit GST & TDS after receipt of payments #FinanceIndia #StockMarketNEWS
Consulting Engineers seek permission to deposit GST & TDS after receipt of payments New Delhi, Nov 19 (KNN) The Consulting Engineers Association of India (CEAI) have urged Prime Minister Narendra Modi to have a re-look at its Goods and Services tax (GST) and Tax Deduction at Source (TDS) collection regime for consulting and services community.

In this regard, CEAI, on Thursday shot off a letter and also urged him to allow the sector to deposit GST and TDS after receipt of payments from the clients.

“At present Consultants pay their taxes as conscientious professionals and firms and feel utterly frustrated as both GST and TDS as they have to be deposited on accrual and due basis. GST has to be deposited within 30 days of raising of Invoice and not on receipt of our dues from the Customer/Client, said Amitabha Ghosal, President, Consulting Engineers Association of India (CEAI).

“The Consulting engineering companies are engaged in the service sector and are totally dependent for our survival on timely receipt of dues from the clients. Banks are reluctant to advance finance to professionals, and in any case are averse to funding payment / deposit of GST and Income Tax.

Delays in receipt of dues from clients adversely affect our financial situation, leading to delays in deposit of GST along with interest” said Ghoshal.

“Any delay in deposit of GST leads to threats of cancellation of GST registration and/or prosecution, etc. This is in spite of the fact that we pay interest on delayed deposit of GST despite our tight Liquidity situation. Similarly, the TDS has to be deposited by the 7th of the subsequent month irrespective of non-receipt of dues by a professional firm from its clients, on time. Due to financial limitations, there arises situations of delayed deposit of TDS. Here again, in spite of depositing TDS along with interest, we are subject to receipt of prosecution notices from the Income Tax department “ said K K Kapila, Chairman, CEAI, Infrastructure Committee.

“The Consulting Engineers have urged the Prime Minister to intervene and to direct the Finance Ministry not to initiate prosecution proceedings against such law-abiding firms/professionals, unless malafide intentions are blatantly visible. Equating all service providers and their business requirements to be similar is a very myopic approach. For instance, an infrastructure consultant, who as part of the service sector, contributes immensely to the development of the country as well as earns valuable forex reserves, are required to pay GST within 30 days of raising invoice, months ahead of realising the actual payment from the client.

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