Is vat applicable for sale of flats ?

CA JK (Student) (187 Points)

26 July 2014  

Hello all

 

My client is a construction company, they construct flats and sell. While entering into agreement of sale with customer they mention the flat sale value which consists of VAT and Service Tax. So my question is whether VAT is applicable for sale of flat ??

 

Please also let me know whether Works Contracts Tax is applicable or VAT is applicable ? My client is a construction company in Tamilnadu.

 

Thank You !