https://www.taxtmi.com/forum/issue?id=115222 Whether a principal contractor who completes a works contract after a subcontractor abandons it and who procures and uses some materials on his own account is liable to VAT on profit or loses back-to-back treatment. VAT liability is ordinarily limited to the value of materials used in the works; profit is not taxable. Supplying some materials to finish abandoned subcontracted work does not automatically create a separate taxable supply, and factual proof of contractual continuity and allocation of materials is required to preserve back-to-back treatment. en-us Sun, 21 Jul 2019 19:19:21 +0530 Thu, 23 Jan 2025 15:55:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=115222 Whether a principal contractor who completes a works contract after a subcontractor abandons it and who procures and uses some materials on his own account is liable to VAT on profit or loses back-to-back treatment. VAT liability is ordinarily limited to the value of materials used in the works; profit is not taxable. Supplying some materials to finish abandoned subcontracted work does not automatically create a separate taxable supply, and factual proof of contractual continuity and allocation of materials is required to preserve back-to-back treatment. Discussion-Forum VAT / Sales Tax Sun, 21 Jul 2019 19:19:21 +0530 https://www.taxtmi.com/forum/issue?id=115222