Madhaya Pradesh Vat - Issue of materials to contractors

[Guest]

Dear Sir,

We are the limited company and getting Govt Road contract at Madhya Pradesh. 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 in our a/c from supplier 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 MP Vat or not.

Kindly give me solution in this regards.

Regards

S D

[DR.MARIAPPAN GOVINDARAJAN]

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

AI Summary

VAT liability on issuing purchased materials to a subcontractor: whether such transfer attracts state VAT when bought on the principal's account. A limited company bought construction materials on its own account (paying VAT) and issued them to its subcontractor; the central question is whether issuing those purchased materials to the subcontractor constitutes a taxable supply attracting Madhya Pradesh VAT.