Is vat to be charged on resale of factory building

No Vat applicable!!!

VAT is charged on resale of goods and as per the common definations contained in almost all State VAT legislation goods means moveble items (one of the exception could be in case of works contract). Thus, no VAt in attracted on resale of immovable properties. 

Agree with MD Irfan ......

vat will be charged even on resale of goods

but goods under vat does not include actionable claims and immovable property

so  factory building it self does not come under definition of goods under vat

any excess amount realised over indexed cost of acquisition will be taxed under capital gains