Urgent-vat implication on real estatedeveloper

As per the l & T case decided by the SC. The developer is liable to vat only if the developers enter the agreement of sale during the construction of building. If no agreements to sale with customer then there is no vat liability. Further, if the agreement to sale entered after construction of building the it is considers as immovable property since the vat liability is only on the movable property consequently vat liability will not arise. After construction means after obtaining the occupation certificate from the appropriate authority.

The property is located in uttarakand. The liability to pay vat arise in uttarakand,Since the sale of goods in the execution of works is in the state of uttarakand.