works contract tax for sub-contractor

This query is : Resolved

Muralimohan Baabu.P (Querist)
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15 March 2009 we under taken sub-contract for lay out devolopment in Karnataka from a PSU, actual client is a Govt. Department of Karnataka. 1.please provide info on sub-contractors liability for VAT. 2.Is there any exemption for sub-contractor as the client is deducting TDS on primary contractor bills. provide with rule and act position.
regards.-Muralimohan

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
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31 March 2009 If the main contractor is paying taxes on entire turnover, sub-contractor will not be liable for the same. If sub-contractor is paying taxes on their turnover, main contractor will get deductions.