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
Company Queries VAT Charge on Materials for Subcontractor in Government Road Project Under Madhya Pradesh VAT Rules A limited company involved in a government road contract in Madhya Pradesh is subcontracting the project, including materials and labor, to another party. Due to the subcontractor's insufficient funds, the company is purchasing materials with VAT from suppliers on behalf of the subcontractor. The company queries whether it must charge Madhya Pradesh VAT when issuing these materials to the subcontractor. A respondent inquires if the issue has been clarified but does not provide a direct answer. (AI Summary)
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