Thursday, May 6, 2010

House prices may go up 4% on service tax

Prices of residential flats are likely to go up by 4% in a couple of months, notwithstanding the recent relaxation in the service tax. The latest Union Budget had imposed a 3% service tax on builders, while the state would impose VAT of 1% on a flat’s price.
“Normally, tax provisions in the Finance Bill come into force from June 1, which is when we expect the service tax to come into force. So, if a flat costs Rs 40 lakh, builders will get 75% abatement which leaves Rs 10 lakh, or 25%, on which service tax will have to be paid. The buyer will have to pay around 3% as service tax and 1% VAT (in some states including Maharashtra),” said CREDAI Pune president Satish Magar.

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2) SATURDAY, MAY 1, 2010

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