How to make a running account (RA) bill

Contractors bill work in stages by measurement. Each RA bill shows the quantity done till the last bill, in this bill and up to date, and the deductions to reach the net payable.

Step by step

Your firm and the client. Your details and bank once; client, name of work, site and work order number.
BOQ items. Item number, description, unit, rate and BOQ quantity.
Quantities. Previous quantity and this bill's quantity; up to date is worked out, with a warning above BOQ.
GST and deductions. GST (18% in most cases), retention or security deposit, income-tax TDS, GST TDS for government clients, advance or material recovery.
Save and print. A4 with three quantity and three amount columns, deductions, net payable and signatures.
Next month: Next RA bill. Open the last bill, press Next RA bill: quantities move into previous, RA number goes up.

Worked example

RA bill 3 of a contractor firm to a government department: work in this bill ₹4,00,000 + GST 18% ₹72,000 = ₹4,72,000.

Less retention 5% of ₹4,00,000	₹20,000
Less income-tax TDS 2% (firm) on ₹4,00,000	₹8,000
Less GST TDS 2% on ₹4,00,000	₹8,000
Net payable	₹4,36,000

Rules and dates

GST TDS of 2% (1% CGST + 1% SGST, or 2% IGST) is deducted by government bodies on contracts above ₹2.5 lakh (section 51, CGST Act). Income-tax TDS on contractors is 1% (individual/HUF) or 2% (others) under section 393 (old 194C).

Common mistakes and how to fix them

Up-to-date quantity above the BOQ. Get an extra-item or variation order first.

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How to make a running account (RA) bill

Step by step

Worked example

Rules and dates

Common mistakes and how to fix them

Related help

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