A company in Karnataka got a works contract order from Kerala. Company took the contract and subcontracted entire work to a firm in Kerala to execute. Now Main contractor does not have VAT registration in Kerala, but has VAT registration in Karnataka. Subcontractor has VAT registration in Kerala. All materials were purchased in Kerala and work was completed by sub contractor.
On completion of the works contract, sub contractor want to invoice main contractor with Local VAT as he has executed contract locally. Main contractor wants to bill his client CST as he is not registered in Kerala and want to bill from Karnataka. Is it correct. Since materials were purchased and consumed in Kerala itself, whether CST billing is ok for Main contractor
Please clarify. Thanks in advance
CAclubindia
