Input Credit on Sub-Contractor's Tax Invoice

Ramakrishnan (Sales tax consultant) (28 Points)

09 August 2010  

Dear All,

 

One of my client is constructing apartments in Bangalore he is collecting the Vat tax applicable under the Act. He is charging 12.5% on 70% of the amount during the year 2009-10. he has given some subcontract work to some registered dealers. The sub-contractor is charging 12.5% on 70% of the work done. The client is not claiming exemption of Sub-Contractor's charges from the turnover.

 

My question is, can my Client take the input tax credit based on the sub-contractor's tax invoice?

 

Thanks,

 

Ramakrishan