Vat on ready flat

   In the Raheja Devopment Vs St of Karnataka &others, the honourable SC have decided that there will be no vat liability on the sale completed apartments. The builder will have to prove that a proper completion certificate is issued by a competent authority before selling a flat to claim exemption.Now ,recently,on 26th Sept,2013,in a referral order tthe SC have further clarified that if a flat buyer enters into an agreement during the construction of an apartment building,the vat liability will be on the balance part of construction done after the agreement.For ex :if an agreement of construction  sale of flat is done when about 90% of construction was already over,then the vat is payable on the balance part i.e.10% of the construction only.However,this latest decision is yet to be implemented by the state govts......mjk