State Act

CHHATTISGARH COMMERCIAL TAX ACT 1994

This Act was repealed on a date we do not have by the Madhya Pradesh Vat Act, 2002 (No. 20 of 2002), s.72, as printed in the Madhya Pradesh copy of that Act: "The Madhya Pradesh Vanijyik Kar Adhiniyam 1994 (No.5 of 1995) shall stand repealed on the date of coming into force of this Act"; it may still apply to matters that began before then.

Sec. 7 : Joint and several liability of a contractor or a sub-contractor (1) Where a dealer who carries on the business of supplying goods in the course of execution of works contract entered into by him (hereinafter referred to as a contractor) through another such dealer (hereinafter referred to as a sub-contractor) directly or otherwise, and the sub-contractor executes such works contract and each or either of them is liable to pay tax under this Act, then notwithstanding anything contained in this Act, the contractor and the sub-contractor shall be jointly and severally liable to pay tax in respect of 3[transfer of property in goods whether as goods or in some other form involved in the execution of such works contract]. (2) If the contractor proves in the prescribed manner that the tax has been paid by the sub-contractor on the turnover of goods supplied in the course of execution of the works contract, the contractor shall not be liable to pay tax again on the turnover of such goods. (3) If the sub-contractor proves in the prescribed manner that the tax has actually been paid by the contractor on the turnover of goods supplied in the course of execution of the works contract, the sub-contractor shall not be liable to pay tax again on the turnover of such goods. (4) Deduction in respect of the turnover of goods supplied in the course of execution of works contract referred to in sub-section (2) or sub-section (3) shall be allowed to the contractor or to the sub-contractor on the production of proof required to be furnished under the said sub-section.