We are developing one commercial complex, purchasing materials and issuing to subcontractors vide tax invoices. We are taking input credit whatever out put tax is their(Material issued to subcontractor)
17 November 2010
it all depends upon the type of registration. if your are registered as a works contractor, you are not eligible for making sale & purchase.
17 November 2010
NO, Please remember work contract includes sale of material. Material is being purchased by you and supplied free of cost to the subcontractor: This transaction involves transfer of property from Main contractor to the Owner of the project, as the material is being consumed in his project. Now the contractor is liable to pay tax on sale of goods involved in the execution of work contract to his principal (Owner).
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