Will there be increase in 10% of property price?



Budget 2010 levied service tax to constructions. Will there be increase in 10% of property price?

Will there be increase in 10% of property price?
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One Reply to “Will there be increase in 10% of property price?”

  1. There is a false impression being created that prices will go up by 10 per cent but the fact is that 10 per cent service tax is levied only on 33 per cent of the value.The contractor is entitled to claim abatement to the extent of 67 per cent of the value of services rendered by him. It must also be understood that similar to the VAT, input tax credits could be available to offset these service taxes and hence the net effect of the tax could be lesser than the 3.4 per cent, since construction attracts service tax only on 33 per cent of the value.
    Following links helps to clear your doubts on service tax.
    http://www.commonfloor.com/articles/service-tax-on-construction-and-sale-of-residential-property-1232.html





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