Treatment of 12% VAT on the costing of materials in the preparation of Program of Work and Estimates

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Treatment of 12% VAT on the costing of materials in the preparation of Program of Work and Estimates

Post by Jovinal on Wed Jan 11, 2012 1:22 pm

I just like to ask clarification regarding the treatment of 12% vat on the costing of individual items of material in the preparation of the Program of Work and Estimate, let say 1,000.00 exclusive of VAT or 1,120.00 inclusive, in view thereof which is to be used the the 1,000.00 or 1,120.00 ? Thank You.
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Re: Treatment of 12% VAT on the costing of materials in the preparation of Program of Work and Estimates

Post by sunriser431 on Sun Apr 29, 2012 12:57 pm

Jovinal wrote:I just like to ask clarification regarding the treatment of 12% vat on the costing of individual items of material in the preparation of the Program of Work and Estimate, let say 1,000.00 exclusive of VAT or 1,120.00 inclusive, in view thereof which is to be used the the 1,000.00 or 1,120.00 ? Thank You.
You have to refer to the PBD for infra
excerpts from Section II. Instructions to Bidders
C. PREPARATION OF BIDS
section 15.1 xxxx
section 15.3. All duties, taxes, and other levies payable by the Contractor under the Contract, or for any other cause, prior to the deadline for submission of bids, shall be included in the rates, prices, and total bid price submitted by the Bidder.
bounce
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Re: Treatment of 12% VAT on the costing of materials in the preparation of Program of Work and Estimates

Post by regina avelino on Mon Apr 30, 2012 10:02 am

what if the bid of one of the bidder is vat-inclusive and the others are vat exclusive, our we disqualifying the vat-exclusive bidders? good morning po to all...

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Re: Treatment of 12% VAT on the costing of materials in the preparation of Program of Work and Estimates

Post by sunriser431 on Mon Apr 30, 2012 1:35 pm

regina avelino wrote:what if the bid of one of the bidder is vat-inclusive and the others are vat exclusive, our we disqualifying the vat-exclusive bidders? good morning po to all...
Please refer to PBDs 4th edition in Section 11 Instructions to Bidders and read section 28.6 for your guidance. bounce
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Re: Treatment of 12% VAT on the costing of materials in the preparation of Program of Work and Estimates

Post by Mikel on Thu Oct 29, 2015 10:36 am

DPWH DO No. 22, s. 2015 issued on February 18, 2005, reduced the VAT component to 5% (from 12%) in the preparation of the approved budget for the contract (ABC) for infrastructure projects of the DPWH. The COA in our LGU had commented that they will disallow the excess of 7% in the program of work prepared by the Engineering Office of our LGU as it contravenes the DPWH issuance. RA 9337 imposes 12% VAT on sale of services. Questions:
1. Are LGUs obliged to follow the DPWH issuance?
2. In the preparation of program of works for LGU infrastructure projects, is it legal to use the 12% VAT rate as the VAT component in the preparation of the ABC?
Thank you for your reply/ies.

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