VAT liablity for materials purchased on behalf of Sub contractor

[Guest]

Dear Sir,

We are the limited company and getting Govt Road contract at West Bengal. and we have given the same contract to our sub contractor with materials and labour. and Due to insufficient fund of sub contractor , we are the buying some materials on behalf of contractor. and we have purchased the materials with Vat. Our query , when we issue the same materials to our sub contractor , then we are liable to charge the WB Vat or not. If not kindly provide the act and rules in this regards

Kindly give me solution in this regards.

Regards

S M

[DR.MARIAPPAN GOVINDARAJAN]

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

AI Summary

VAT liability: whether a contractor must charge state VAT when issuing purchased materials to its subcontractor. A principal contractor for a government road project purchased construction materials, paying VAT, because its subcontractor lacked funds; the question posed is whether the principal must charge West Bengal VAT when issuing those VAT-paid materials to the subcontractor and which statutory provisions or rules govern that onward supply.