He further stated that in places like Tamil Nadu where land is being registered separately and building sold /conveyed by a contract, an abatement of 66.3 per cent has been given and 10.3 per cent is payable on the balance towards service tax.
CREDAI Tamil Nadu has been given to understand that from July 1, 2010, all payments received will be subject to and/or liable for service tax. The above Deeming Provision is seen as a retrograde step by the Government as it negates the clarification issued by them by way of a circular in Jan 2009. Notwithstanding the same, developers in Tamil Nadu have been subjected to showcause notices for payment of Service Tax post the clarifying circular too.
CREDAI Tamil Nadu is a regulatory body representing over 230 odd Members in Chennai, Coimbatore, Madurai and Tiruchirapalli. Amongst the many representations made by CREDAI Tamil Nadu, the most recent one has resulted in the Government reducing infrastructure and amenities development charges.
CREDAI actively works with the Government of Tamil Nadu, Department of Housing and other related Government agencies and bodies, and works in tandem with its National Secretariat in New Delhi on representations to the Centre to sort out controversial or harsh policies that could have adverse implications on not just developers but also on home buyers.
CREDAI had made number of representations seeking relief from service tax in respect of developers and promoters. Unfortunately, the industry has not got any relief from service tax in the recent set of notifications issued by the Central Government.
Service tax is payable at the rate of 10.3 per cent on 33 per cent of the construction contract without Cenvat credit. This will further increase the prices of flats defeating the very objective of the Government in recent times. /*added buzzr for google buzz */
3 comments:
This is really something which was not expected. Actually the service tax on early bookings should not be levied on real estate India.
valuable information sharing through your blog.
Budget Apartments at Korukkupet
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