VAT on Works Contracts: Tax Levied on Entire Contract Value, Not Immovable Property Sale. Legal Interpretation Clarified.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Payment of tax at compounded rates - Levy of VAT / Tax on immovable property or works contract - The imposition of tax on the whole contract value, the State cannot be seen as imposing tax on the sale of immovable property; on the contrary, it has to be seen as levying tax on the works contract undertaken by the petitioner, albeit on a value that stood enhanced by the cost incurred for the completed construction. - HC....