Supreme Court Decision - L&T - VAT on construction contracts

The Hon'ble Supreme Court has in the case of L&T in the context of the VAT laws held that "activity of construction undertaken by the developer would be works contract only from the stage the developer enters into a contract with the flat purchaser. The value addition made to the goods transferred after the agreement is entered into with the flat purchaser can only be made chargeable to tax by the State Government"

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