Supreme Court rules VAT due on sale of flats

The larger bench of the Supreme Court has endorsed the decision of the two-judge bench in the case of K Raheja Development Corporation, and held that the construction of flats on behalf of purchasers is a ‘works contract’ and that the State Government is entitled to levy VAT on such a supply, irrespective of the eventual transaction involving the sale of immovable property in the flats.

Via – Supreme Court rules VAT due on sale of flats.

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