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2013 (10) TMI 1218 - HC - VAT and Sales TaxWorks Contract - Whether activity of construction / development by a Builder would constitute Work Contract in certain circumstances - Held that:- Construction of flats on its own can not be tanable as work contract under U.P.T.T. where the right title and interest in the construction continue to remain with the developer mere payment term would not alter the nature of transaction - particular unit is not resold but retained by the Appellants, there would be no works contract to that extent. But so long as there is no termination the construction is for and on behalf of purchaser. Therefore, it remains a works contract within the meaning of the term as defined under the said Act. It must be clarified that if the agreement is entered into after the flat or unit is already constructed, then there would be no works contract. But so long as the agreement is entered into before the construction is complete it would be a works contract - Following decision of ASSOTECH REALTY PVT. LTD. Versus STATE OF U.P. [2007 (3) TMI 32 - HIGH COURT , ALLAHABAD] - Decided against assessee.
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