vat liability on builders

This query is : Resolved

C.A. neeraj kuamr jain (Querist)
Follow

21 May 2009 i want to know that if a party is purchased land and constructed flat on these through a contractor and after that sold the flat to individuals. will there be any vat and service tax liability.
what will the case if he himself constructed the flat .

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
Follow

22 May 2009 It would be a sale of Immovable Porpperty and not liable for VAT since the same is being transferred after construction.
VAT seeks to tax the transfer of porperty involved in a WC.