Finance Minister Pranab Mukherjee’s decision to increase the tax concession on construction of real estate complexes from 67 per cent to 75 per cent of the gross value of property, including land value, has been welcomed by the industry and analysts.
The minister also announced that the low-cost housing (property up to Rs 20 lakh) segment would be exempted from service tax.
In a relief to realty sector and home buyers, Finance Miniser Pranab Mukherjee today announced tax concessions to the construction sector, which was brought under the ambit of service tax in this year’s Budget.
With today’s announcement, service tax would be levied on 25 per cent of the gross sale value of property compared to 33 per cent proposed in the budget in February this year.
Finance Minister Pranab Mukherjee today said service tax on air travel will not have any adverse impact as it is not linked to fare and has been capped at Rs 100 for domestic travel and Rs 500 for international travel.
“I would like to clarify that it would not be so. It would not be linked to the percentage of the fare,” he said.
In the midst of a tax probe into finances of IPL, authorities have issued notices to several sponsors of the first edition of the Twenty20 event, including DLF, Adidas and Religare for non-payment of service tax.
The notices have asked as to why no service tax has been paid for the sponsorship deal for the first edition of IPL, held in 2008, official sources said. While DLF is the title sponsor of IPL, Adidas was sponsor of Mumbai Indians and Delhi Daredevils.
Real estate industry body Confederation of Real Estate Developers’ Associations of India (CREDAI) today said it has submitted a memorandum to the Finance Ministry, asking the government to remove service tax on housing complexes under construction.
CREDAI prepared a list of recommendations in consultations with its knowledge partner KPMG. The suggestions were submitted to Finance Ministry Member (Budget) Y G Parande.
Chartered Accountants in practice for one year or more may become Certified Facilitation Centre for providing facilities to Central Excise and Service Tax assessees to file returns and other documents electronically under ACES Project of the CBEC.
ICAI is pleased to announce signing of Memorandum of Understanding with the CBEC, to facilitate setting up of CFCs under ACES Project by Chartered Accountants in practice.
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