Service tax to be levied on construction of flats
As per the recent Bombay High court’s order, service tax will be levied on construction of properties.
Earlier, Maharashtra Chamber of Housing Industry (MCHI) challenged the order of paying extra service tax.
The order also stated that only state government has the power to levy tax on flats, buildings and other plots.
MCHI has already given a service tax of Rs 180 crore collected from buyers.
Due to the service tax levied, buyers have to pay more for a property and because of which builders have witness a 30% dip in sales.
Now, flat buyers have to pay 2.5% more as service tax on total cost of the flat.
Source: The Times of India
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Hai! you have put up very informative writing. Found your site on Google! Let me know where I can find your daily write ups. Will be looking forward for your reply!
I agree with all the content above! Will this tax be burdening on the property buyers by any chance?
Hey, good information! But, please let me know on what basis is the state government is levying tax on flats, buildings and other plots?