Amount paid to sub-contractor to be deducted from taxable consideration of main contractor under VAT Act

Authority For Clarification And Advance Rulings Vs Skyline Construction And Housing Pvt. Ltd (Supreme Court of India)

Supreme Court upheld the judgement of High Court and held that in case of execution of a works contract through a sub-contractor, the sub-contractor was liable to pay tax under the VAT Act and therefore the payment made by the main contractor to the sub-contractor was not liable to be included in the taxable consideration of the main contractor as this would lead to double taxation.

Facts- The respondent-assessee was a registered dealer unde

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