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Bad News in Budget Service Tax Further Increased 2 More

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Bad News in Budget Service Tax Further Increased 2 More

Last updated: June 2 2012
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  • Bad News in Budget Service Tax Further Increased 2 More

    Will it also increase the Service Tax of Under Construction Property which implemented Last year? I personally think YES

    कहां चली जेब पर कैंची
    सर्विस टैक्स 2 पर्सेंट बढ़ाः बजट में सर्विस टैक्स में 2 पर्सेंट की बढ़ोतरी कर दी गई है। अब यह 10 से बढ़कर 12 पर्सेंट हो गया है। इससे बैंक ड्राफ्ट बनाना , फोन बिल , साइकल , टीवी , घड़ी , बड़ी कारें , कूरियर , होटेल में खाना, हवाई सफर , पार्लर सर्विस महंगे हो जाएंगे।
  • #2

    #2

    Re : Bad News in Budget Service Tax Further Increased 2 More

    Originally posted by saurabh2011 View Post
    Will it also increase the Service Tax of Under Construction Property which implemented Last year? I personally think YES

    कहां चली जेब पर कैंची
    सर्विस टैक्स 2 पर्सेंट बढ़ाः बजट में सर्विस टैक्स में 2 पर्सेंट की बढ़ोतरी कर दी गई है। अब यह 10 से बढ़कर 12 पर्सेंट हो गया है। इससे बैंक ड्राफ्ट बनाना , फोन बिल , साइकल , टीवी , घड़ी , बड़ी कारें , कूरियर , होटेल में खाना, हवाई सफर , पार्लर सर्विस महंगे हो जाएंगे।
    you are 100% right. Under construction property payments will now include 12% service tax - say one lakh more tax on 50 lakh payment

    Comment

    • #3

      #3

      Re : Bad News in Budget Service Tax Further Increased 2 More

      what will e affected?? The 2.5% service tax on BSP ot the 10% on other extra charges?

      Comment

      • #4

        #4

        Re : Bad News in Budget Service Tax Further Increased 2 More

        It is 2.5 % for BSP for a underconstruction flat and 10% for the other charges like PLC etc.

        Not that whole 12% service tax is been chanrged form you. However, very bad move indeed.

        We as an end user have to bear this service tax increase from all corners and what rebate we have got some 10000+ for salaried employee that to for 8+ lakh plus category else only 2000 rs benefit.

        High inflation,High service tax, High interest rates, No social securty, cut in EPF....Thanks to people who voted congress

        Excise duty has also gone high 2% ,ore again we have to pay that.. All in all again Congress has shown his ugly face. and people who support congress will get an egg on there faces.

        Comment

        • #5

          #5

          Re : Bad News in Budget Service Tax Further Increased 2 More

          Originally posted by AashishK View Post
          what will e affected?? The 2.5% service tax on BSP ot the 10% on other extra charges?
          I think both will Increase Now...... After this budget now it will be 3% on BSP , 12% Service tax on Other Charges.... MY POV.....

          Really very very very BAD NEWS....

          What Other Members Say....

          Comment

          • #6

            #6

            Re : Bad News in Budget Service Tax Further Increased 2 More

            I am not sure but I thought 2.5% on BSP was derived from some regulation that 100% of properly wont be charged under Service tax, only 25%(or 33% not sure) would be charged. So earlier 10% of (25% of 100% BSP) used to be 2.5%.

            By that logic 12% of (25% of 100% BSP) would be greater than 2.5% i.e this percentage would also get increased?

            I am not sure if this logic hold good, I was just searching net and trying to make sense of what service tax is and how it is derived.

            Experts please comment.

            Comment

            • #7

              #7

              Re : Bad News in Budget Service Tax Further Increased 2 More

              Originally posted by saurabh2011 View Post
              I think both will Increase Now...... After this budget now it will be 3% on BSP , 12% Service tax on Other Charges.... MY POV.....

              Really very very very BAD NEWS....

              What Other Members Say....
              Thanks Saurabh.
              Do you think the existing customers who bought an under construction property last year would also have to bear this impact? Or would it only be for new customers?

              Comment

              • #8

                #8

                Re : Bad News in Budget Service Tax Further Increased 2 More

                Pasting this from the service tax exemptions category listed in the budget document-- "Construction services relating to specified infrastructure, canals, irrigation
                works, post-harvest infrastructure, residential dwelling, and low-cost mass
                housing up to an area of 60 sq. mtr. under the Scheme of Affordable Housing in
                Partnership are also included in the exemptions."
                Does this mean residential dwellings will be exempted from service tax?????? This is a big development guys....veterans pls advice...Or am I reading it wrongly?

                Comment

                • #9

                  #9

                  Re : Bad News in Budget Service Tax Further Increased 2 More

                  Originally posted by AashishK View Post
                  Thanks Saurabh.
                  Do you think the existing customers who bought an under construction property last year would also have to bear this impact? Or would it only be for new customers?
                  Let us see the details of budget in next 1-2 days... but I think it will applicable for each & every new remaining payment demand by builders same as it was started after JULY/2011....

                  Comment

                  • #10

                    #10

                    Re : Bad News in Budget Service Tax Further Increased 2 More

                    i also heard that there is some exemption oncapital gains from property sale ..
                    can anybody share the details ?

                    Comment

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