Free tool
RA bill calculator
Work out a running account bill in seconds: this bill's value from work done to date, GST, retention, TDS under 194C, GST-TDS for government clients and advance recovery, down to the net payable. Nothing you type leaves this page.
How an RA bill is calculated
- Value of this bill = work done up to this bill − work billed up to the previous bill. Work done comes from the measurement book: quantity measured × BOQ rate, item by item.
- GST is added on the value of this bill at the rate for your contract.
- Retention is held back as a percentage of the bill and released at completion or after the defects liability period.
- TDS under section 194C is deducted on the value before GST: 1% for an individual or HUF, 2% for a company or firm.
- GST-TDS of 2% is deducted only by government clients, on contracts with a taxable value above ₹2.5 lakh.
- Advance recovery takes back a share of any mobilisation or material advance, as the contract sets out.
What is left is the net payable: the amount that should reach your bank account for this bill.
Stop building RA bills in Excel
In Mezura OS the site engineer records measurements against the BOQ on the phone. At month end the RA bill builds itself from everything measured since the last one: previous, this bill and to date, with GST, retention, TDS and advance recovery, as a tax-invoice PDF. The same works for bills from your own subcontractors and labour contractors. Bills are one part of the app; the rest runs the site: DPRs, programme, labour, material and snags.
Questions
What is an RA bill?
A running account (RA) bill is an interim bill for the work done in a period, usually a month, while the contract is still running. Each RA bill claims the work measured since the last bill, and the final bill settles the account when the work is complete.
How is the amount of an RA bill worked out?
Take the value of work done up to this bill, subtract what was billed up to the previous bill, and you have the value of this bill. Add GST, then deduct retention, TDS, GST-TDS where it applies, advance recovery and any other deductions to get the net payable.
Is TDS on a contractor bill calculated on the amount with GST or without?
Without. When GST is shown separately on the invoice, TDS under section 194C is deducted on the value before GST: 1% for an individual or HUF contractor and 2% for others.
When does GST-TDS apply to a contractor bill?
GST-TDS of 2% (1% CGST and 1% SGST, or 2% IGST) is deducted by government departments, local bodies and notified agencies when the taxable value of the contract is more than ₹2.5 lakh. Private clients do not deduct it.
What is retention money in an RA bill?
Retention is a percentage of each bill, often 5% to 10%, that the client holds back as security for defects. It is released at completion or after the defects liability period, as the contract says.
Run every site from one app
Mezura OS is construction project management for Indian builders and contractors: DPRs with photos, the programme, labour, material, snags, approvals and bills, on the phone your site team already carries. 30 days free, no card, every user included.