Project Management

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Topic

    Durga Prasad Mohapatro
    Tax for Project Contract
    Topic posted October 2, 2018 by Durga Prasad MohapatroSilver Medal: 2,000+ Points, tagged Project Billing & Revenue, Project Contracts 
    66 Views, 3 Comments
    Title:
    Tax for Project Contract
    Summary:
    Tax for Project Contract
    Content:

    We have a project contract of 100K. For the contract, we have paid contract tax of 12k. Now, this tax is not part of the contract. This is an expense for us.

     

    So, if I create a contract project in PPM, the contract amount i need to create in 100K. So how/where can I capture this Tax amount in the project?

    Comment

     

    • Avesh Ganodwala

      Hi,

       

      Could you please check if you are capturing the Tax classification code at the contract level.SO once you update the tax classification then when ever you generate contract invoice the tax would get included as per the classification code. 

       

      Kindly check if the that helps.

       

      Regards,

      Avesh Ganodwala

    • Durga Prasad Mohapatro

      Hi Avesh,

      This option from you is applicable, when we start billing the customer. That is fine.

      What i meant in my question is

      We paid tax of 12K to govt for contract registartion. Before the project is started.

      So, Now, if i create a contract project, my contract amount is 100K.

      But, I have already paid 12K. So, In the contract project, can i add this cost ( so my contract amount become 112K) also for billing to customer? OR Shall i show it as an expense task in the project WBS?