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Budget 2015 Property Rates going to hike after rise in Service-tax

Budget 2015 , Property Rates going to hike after rise in Service-tax

Budget 2015, Property Rates will rise slightly with proposed hike in service tax to 14 per cent, according to real estate industry associations CREDAI and NAREDCO.The Finance Minister proposed in Budget 2015 an increase in service tax to 14 per cent from 12.36 per cent before. “Hike in service tax will lead to increase in property prices by nearly 0.5 % of the total cost,” CREDAI, the apex realtors’ body, Chairman Lalit Jain said.

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CREDAI President (elect) Getamber Anand also said: “There will be an direct impact of increase in service tax, as the cost of property will increase”. “The effective service tax would now increase by 0.41 per cent from 3.09 per cent earlier,” he added. All under-construction properties are covered under the service tax that developers pass on to the buyers.