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Informative

No VAT Leviable on Value of Land Under Works Contract as per KVAT: Karnataka HC

Update / Judgement Date

13 Apr 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Appeal Against OrderExcise, VAT & Custom

The Karnataka High Court held that no VAT (Value Added Tax) is leviable on the value of land under a works contract, as per the KVAT (Karnataka Value Added Tax) Act. The court reiterated the principle that VAT is a tax on the sale of goods, and in a works contract, the value of the land, being an immovable property, is not considered as goods and is therefore not subject to VAT.