Tax paid by contractee on goods supplied to contractor, is allowable as ITC to such contractor

0 comments Thursday, May 26, 2011
The Punjab & Haryana High Court has held in an important case namely Lajpat Rai Chanana V State of Haryana & others (2011) 38 PHT 390 (P&H) that input tax credit to a works contractor executing the works contract will be justified if the contractee has already paid the tax on the goods supplied by him to the contractor.

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