Fresh Contract
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If. for example, a buyer has placed a contract with a chassis manufacturer for the purchase of a complete vehicle, or even chassis and cab, and the chassis manufacturer sub-contracts the building of the body or cab, then even if the chassis is completed and delivered to the sub-contractor before July 1, liability for tax would probably not be avoided. In cases such as this, it would be safer for the buyer to make a fresh contract with the chassis manufacturer and to take actual delivery of the chassis (this could be done by the bodybuilder or cab-builder on his behalf) before July 1. Separate contracts should also be made between the buyer and the bodybuilder and cab-builder. These difficulties would arise only in the interim period up to July I.