Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: list of goods taxed at 4% :: cpt :: Central Excise rule to resale the machines to a new company :: form 3cd :: VAT Audit :: ACCOUNTING STANDARD :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: VAT RATES :: articles on VAT and GST in India :: ACCOUNTING STANDARDS
 
 
Service Tax »
 All you want to know in 5 brief points
 GST loss to be reduced by slice of service tax
 Government encouraging self-registration for GST
 Spl assembly session on GST Bill on May 9
  Getting the trade to align with GST is a challenge
 Getting the trade to align with GST is a challenge
 With GST launch, race against time to avoid sales tax upheaval across India
 GST to rate taxpayers, businesses on payment record, make ratings public
 7 major benefits of Goods and Services Tax
 100 Opening GST Profiles- Indirect Taxation- ALL Industries
 New Opening Sr. Manager-Indirect Tax For A Leading Power Company

Homes to become cheaper on service tax exemption
February, 03rd 2009

Buying that dream home may have just got cheaper. Property buyers dont have to fork out a service tax any more while buying a house. The finance ministry, in a circular dated 29 January, has exempted all builders of residential properties across the country from paying the service charge.

Earlier, developers would collect 3% service tax on the total value of the property from a buyer in an under construction project. For a Rs30 lakh apartment, a buyer would have had to pay an extra Rs90,000 as service tax.

Its a welcome move. In such bad times, it could boost sales for us because the benefits of the exemption are for real buyers, said Nayan Shah, joint secretary of the Maharashtra Chamber of Housing Industry.

The exemption is a potential boost to housing demand that has waned after economic growth started slowing, borrowing costs rose and credit became less readily available in 2008.

Its a benefit but the process of levying service tax is not transparent. Some builders show it as a separate tax and some do not, said Akshaya Kumar, CEO of Parklane Property Advisors. Kumar said that in the case of the latter, it is incorporated as a consolidated amount charged for the property.

Earlier attempts to revoke the tax were never followed through. In August 2007, a circular from the finance ministry excluded developers from collecting service tax from buyers because construction is done by employing direct labour.

Certain clauses in the circular were confusing. It said ready flats need not pay service tax whereas such flats had been already exempted from the tax. The new circular carries more clarity on the subject, said a Mumbai-based developer, who didnt want to be identified.
Builders charge a 4% value-added tax (that is levied by the state government), along with the service tax.

Service tax is charged as a one-time payment and its usually taken by the builder before the house keys are handed over to a buyer. Builders will continue to collect the 4-5% value-added tax that is levied by the respective state governments, said Shah.

The circular, however, makes an exception for cases where services of an interior designer or architect are hired independently in a project. Such service providers would then be liable to pay service tax.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Custom Software Development Outsourcing Custom Software Development Offshore Cus

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions