https://www.taxtmi.com/caselaws?id=258688 Where the entire works contract is sub-contracted, the transfer of materials in execution is treated as occurring directly between the sub-contractor and the contractee, so the main contractor's retained amount is only profit. In the absence of any sale or taxable transfer of goods by the main contractor to the awarder in the course of execution, no taxable event arises under the Kerala VAT regime on that retained profit element. The discussion reflects the governing principle that a demand cannot be sustained merely because the contractor kept the balance amount as profit, and the levy on that component was treated as illegal. en-us Mon, 10 Nov 2014 00:00:00 +0530 Mon, 07 Mar 2016 11:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=258688 Where the entire works contract is sub-contracted, the transfer of materials in execution is treated as occurring directly between the sub-contractor and the contractee, so the main contractor's retained amount is only profit. In the absence of any sale or taxable transfer of goods by the main contractor to the awarder in the course of execution, no taxable event arises under the Kerala VAT regime on that retained profit element. The discussion reflects the governing principle that a demand cannot be sustained merely because the contractor kept the balance amount as profit, and the levy on that component was treated as illegal. Case-Laws VAT and Sales Tax Mon, 10 Nov 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=258688