The cost of flats will go up 3.3% of the total purchase consideration once service tax begins to be levied on construction.
The government is considering exempting from tax flats booked before the notification
So, a buyer who has booked a flat but will get possession only after the notification of the new service need not worry.
So, if ur budget for new house is 30 lakhs you need to pay 1 lakh extra...think wisely!
i guess this is not going to bring any change in the price of independant houses?
Hey ashwani.... this service tax will be levied only in builders flat @10.3%(as on date< might vary when govt changes service tax rate) on 1/3 value of property. The concept is mainly that of the total cost of a project around 1/3 is the labour cost on which govt thinks service tax should be chargable.
This would not apply to independent houses, however your contracter might be charged service tax on labour charges which he might pass it on to you.
Hi,
Post the budget 10-11 is true that there is going to be a furthur hike on the registry of the property.
Property registration comes under the purview of state government and has nothing to do with Central Govt. budget. This can be increased or decreased anytime by the respective state governments.