Tax exemption for goods supplied by contractee when ownership remains with contractee and value lies outside contract consideration. Where the contractee supplies goods to the contractor for a works contract and retains ownership of those goods under the contract, and the value of those goods neither forms part of the contract price nor is deducted from the amount payable to the contractor, the contractor shall not be liable to pay tax on the value of such goods under the VAT statute.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax exemption for goods supplied by contractee when ownership remains with contractee and value lies outside contract consideration.
Where the contractee supplies goods to the contractor for a works contract and retains ownership of those goods under the contract, and the value of those goods neither forms part of the contract price nor is deducted from the amount payable to the contractor, the contractor shall not be liable to pay tax on the value of such goods under the VAT statute.
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