Low-cost housing would be exempted from service tax.
Finance Minister Pranab Mukherjee’s decision to increase the tax concession on construction of real estate complexes from 67 per cent to 75 per cent of the gross value of property, including land value, has been welcomed by the industry and analysts.
The minister also announced that the low-cost housing (property up to Rs 20 lakh) segment would be exempted from service tax.
Moreover, the decision of exempting service tax for low-cost housing will encourage more buyers.
The decision to abolish service tax in the low-cost housing segment will boost consumers’ sentiments, according to analysts.
Dear Sir,
I have booked a under construction flat in Noor city, kharar, Mohali for 14.5 lakes on Dec.2010 from singla builders and promoters Ltd mohali.
Now Builder demand for Service Tax 37,000 (at time of possession Nov. 2011)
The finance minister announced that the low-cost housing (property up to Rs 20 lakh) segment would be exempted from service tax.
but the builder refuses them. we cant not afford this extra burden of service tax along with the rental house and the home lone interest for that flat. complete cost of flat have been paid. But builder will give possession after payment of service tax. Now i have to bear my house rent and the loan interest
Please help me….
Regards
Vinay Kumar Saini
9888561691
Details of Builder
Singla Builders & Promoters Ltd.
Corporate Office :
Chandigarh- Kharar Highway, Mohali, Punjab
Mobile: +91 92167 71145
Email: sbpgroup@ymail.com
Web: sbpgroup.in