Serive Tax & Vat Applicable on ready to move duplex with extra land in a township in Bhopal, MP

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  1. ZED

    ZED Well-Known Member

    In my opinion, Neither ST nor VAT should be charged since there is express mention of the consideration for land in the agreement with the bifurcation of the area of land aswell.

    Since ST is on construction service, it should not be levied on mere buying of land.
    There is no service element at all.
    Land is an integral part of the building, but in your case you have excess unbuilt land on which no construction was done.
    Similarly VAT is also not applicable as it is applicable for works contract and is in relation to use of goods in works contract.

    It would have been better if there would be a separate agreement for this. [If possible see if it can be done.]

    But yes, I am quite positive that ST and VAT is not to be charged on a transfer of title in an immovable property. Even if you go to court, there are high chances of your win.
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