https://www.taxtmi.com/caselaws?id=754002 The Madras HC allowed a contractor's petition for deduction when work was assigned to a registered sub-contractor under Section 3-B(2) of the Tamil Nadu General Sales Tax Act, 1959. The court held that when work is assigned to a registered sub-contractor, the sub-contractor becomes liable to pay tax and include it in their return, not the main contractor. Following the SC precedent in Larsen Toubro Limited, payments to registered sub-contractors are excluded from the contractor's turnover calculation. The proviso was read down to not apply to contractors using registered sub-contractors, with revenue able to collect tax directly from the sub-contractor if unpaid. en-us Tue, 23 Apr 2024 00:00:00 +0530 Sat, 15 Jun 2024 08:19:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754002 The Madras HC allowed a contractor's petition for deduction when work was assigned to a registered sub-contractor under Section 3-B(2) of the Tamil Nadu General Sales Tax Act, 1959. The court held that when work is assigned to a registered sub-contractor, the sub-contractor becomes liable to pay tax and include it in their return, not the main contractor. Following the SC precedent in Larsen Toubro Limited, payments to registered sub-contractors are excluded from the contractor's turnover calculation. The proviso was read down to not apply to contractors using registered sub-contractors, with revenue able to collect tax directly from the sub-contractor if unpaid. Case-Laws VAT and Sales Tax Tue, 23 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754002