the apex court clarified that VAT is not payable, if a fully constructed flat is sold to the buyer and builders will be liable to pay tax only on cost of construction.
The Supreme Court has clearly held that the levy would kick in "only from the stage the developer enters into a contract with the flat purchaser". The SC said, "It is clarified that activity of construction undertaken by the developer would be works contract only from the stage the developer enters into a contract with the flat purchaser. The value addition made to the goods transferred after the agreement is entered into with the flat purchaser can only be made chargeable to tax by the state government."If a home buyer enters into an agreement when the project is 70% complete, then the developer could charge him VAT only on the balance 30% construction cost
in new india construction company v/s state of haryana 2011 ILLJ 307 P &H
held that the liablity to pay labour cess is on the contractor or the owner . if contractor dosent pay owner has to pay
