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Informative

Value Of Land Under Works Contract Is Not Exigible To VAT: Karnataka High Court

Update / Judgement Date

11 Apr 2025

Source

Live Law

Author

Team — WCP Legal Desk

Reading Time

1 min read

Appeal Against OrderExcise, VAT & Custom

The Karnataka High Court held that the value of land under a works contract is not exigible to VAT (Value Added Tax). The court's ruling clarifies the tax treatment of works contracts, specifically excluding the land component from the levy of VAT. This interpretation is important for businesses involved in construction and other works contracts that involve the transfer of immovable property.