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Finance Ministry not to remove Service Tax on
July, 07th 2010

Breaking News! The real estate prices in India to go up further, as the Finance Ministry decided not to withdraw the proposed 2.5 percent service tax, proposed in the Budget 2010-11.

The Budget has proposed a service tax of 2.5 percent on all under-construction housing projects.Since the builders / developers won't be willing to take this burden, it will naturally come to the customers.

The Urban Housing Development Ministry had sought the withdrawal of 2.5 percent service tax from real estate sector, but the Finance Ministry declined to do so.

Urban Development Minister S Jaipal Reddy had a meeting with Finance Minister Pranab Mukherjee on April 15 and argued in favor of realty sector, but in vain.

The middle class families in India, who are already having a tough time because of rising food and fuel prices, will suffer a lot, as the real estate developers will pass on the burden to them.


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