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.
To read more, visit and, please, Digg the story: http://digg.com/d31QNyD?e
Related Stories:1) WEDNESDAY, MAY 5, 2010
Service tax on property: ICAI moots 3 methods
2) SATURDAY, MAY 1, 2010
April 2010 - Most popular blogs on Ravi Karandeekar's Pune Real Estate Market News Blog
Subscribe for Free!To receive free emails or free RSS feeds, please, subscribe to Ravi Karandeekar's Pune Real Estate Market News Blog
For my blogs on real estate projects near Hinjewadi, real estate investment, advertising and other related topics, please, visit and join my Ravi Karandeekar's Pune Real Estate Blog Group