Vat liability - input of vat

[Jaimin Shah]

I have an order for construction of a power plant which involves supply of several items including civil works. I have placed a order on sub contractor for civil items (eg 10 Cr). The civil contractor purchases local material. The contractor pays the VAT by normal method and gives me the certificate of the same. Now my billing to customer is 11 Crs(1 cr is my profit margin). How much VAT liability i have to carry(pay), will i get any VAT input credit.

AI Summary

Clarification on VAT Liability and Input Credit for Power Plant Construction Project Involving Subcontracting Civil Works A user inquired about VAT liability and input credit concerning a power plant construction project. The project involves subcontracting civil works, with the subcontractor paying VAT on local materials. The user seeks clarification on their VAT liability and potential input credit when billing the customer with a profit margin. A respondent explained that according to a high court order, confirmed by the Supreme Court, VAT paid by a subcontractor is not included in the main contractor's value, implying that the main contractor may not have to account for that VAT in their liability.