WebSoftOSHow it works
The bill is built from measured quantities, normally recorded in a measurement book. From the gross value of work done, the client deducts items such as retention, TDS, GST TDS, labour cess and recovery of any advance, so the cash received is lower than the bill value.
Subcontractor RA bills follow the same pattern against the subcontract BOQ, with advances and back-charges recovered from each bill.
Example
On a ₹50 lakh RA bill with an assumed 5% retention, 2% TDS, 2% GST TDS, 1% cess and a 10% advance recovery, about ₹40 lakh is received.
Frequently asked questions
How often is an RA bill raised?
Usually monthly, or at the interval set in the contract, based on work measured since the last bill.