That the appellant, it had purchased land from the different parties in different location in AGRA. Thereafter plans of the residential apartment sanctioned by the competent authorities, after completion of constriction transferred to the interested person by way sale in different deeds, common areas and facilities, such as lobby, parking, publics amenities etc. as approved in the layout plan was to remain the property of the appellant and no rights would accrue to the interested parties and it continued to be the appellant. can the decision of the hon’ble Supreme Court in the case of K. Raheja Development Corporation V/s State of Karnataka is applicable in this case under UPVAT act
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Construction of residential complexs are covered under the Works Contract Tax under UPVAT Act. You would have to pay the WCT as per the provisions of UPVAT Act.
That the appellant does not make any construction for on behalf of the purchasers and all the constructions made by it are on its own account in accordance with the layout and sanctioned map approved by The Agra Development Authority AGRA. No construction have been under taken on the request of the purchasers.
In order to constitute a valid sale of immovable property, the Sale/ Transfer can only be by a registered instrument in view of section 54 of the Transfer of Property Act. Moreover, a contract for the sale of immovable property, of itself, does not create any tax (Vat) on such property. and after completion of constriction from own funds then transferred to the interested person by way sale in different deeds duly registered with Sub- registrare office.
Judgment in K.Raheja case is limited to the facts of that particular case, hence cannot be applied in all cases of contruction. However, each case has to be seen on its own merits.
Please check with you consultant and also go through the relevant provisions of WCT under UPVAT Act.