Govt. Road Contractor is liable to MP Vat

[Guest]

The company got a Govt road contractor at Madhya Pradesh and We have given the same contract to many of sub contractors . The whole contract made with materials and labour . and we have purchased some materials on behalf of sub contractor. My question while issuing this materials to sub contractor, we are charging MP Vat on them or not ? If not kindly prove us the Act or any notification

Regards

Sanjoy Das

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

AI Summary

Works contract VAT: whether supplying materials to subcontractors creates VAT liability for the principal contractor. Whether a government road contractor in Madhya Pradesh must charge MP value added tax when issuing materials to subcontractors is disputed. The principal contractor held a lump sum contract inclusive of materials and labour, subcontracted portions of the work, and purchased certain materials 'on behalf of' subcontractors before issuing them. Key legal issues are whether the transaction is a works contract or supply of goods and whether the issuance of materials to subcontractors constitutes a taxable supply creating VAT liability for the principal contractor.