Under DVAT ABC is a "company" which has taken contract from
Delhi state govt department and subcontracted part of work
to XYZ. Where ABC is under composition scheme and XYZ is
under normal scheme. Govt deducts 3% WCT from payment to ABC
towards vat.Whether subcontractor is liable to pay WCT vat
on his turnover though the main contractor has already
discharged tax liability on entire turnover? What is the
mechanism ?

Answer Posted / g v s subrahmanyam

The relation between the contractor and subcontractor is
principal and agent. If the main contractor has already paid
the tax inrelation to particular work, in which the sub
contractor also discharged the services to the same work.
Hence to be best of my knowledge, the sub contractor need
not pay tax again under works contract act.

Is This Answer Correct ?    2 Yes 1 No



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