NBR Developers
Citiescities-arrow
  • more-arrow-down
    • Please wait while loading other cities loading...

Realty check for new service tax regime

  • No. 1 Property Portal in India
  • Over 25 Lakhs Apartments and More
  • Post Free Residential Properties in India
  • Find Property in Bangalore
  • Buy/Sell/Rent Apartments in India
  • Search Latest Residential Property in India
  • Get Free Alerts on Property Requirements
  • Find Agents/Buyers for your Property
mobile-ad
“Realty check for new service tax regime” : The Hindu Business Line
The service tax regime has been overhauled vide Budget 2012 — the 18-year-old classification-based service tax law has been replaced with ‘negative list’ based levy. This has widened the scope of services manifold. The shift to a negative list-based taxation is aimed at aligning the service tax system to the proposed Goods and Services Tax regime. It is hoped that the GST will help unify the levies of the Centre and the States into one composite system. Under the new regime, effective from July 1, apart from a handful of services specifically excluded from service tax, every activity for monetary or non-monetary consideration is taxable — the change has an impact on every sector, and real estate is no exception. The service tax legislation, which has been widening its scope of coverage of the real estate sector over the years, has used the transition to the new regime to cover the spectrum of real-estate related services with a few exclusions, and set to rest some of the levies disputed in the past.
RESIDENTIAL APARTMENTS An interesting concept of “declared services” has been introduced under the new regime to settle the question of whether a particular activity can be considered a service or not. For instance, the real estate sector disputed the levy of service tax on residential apartments sold to customers. The issue has been addressed by including the activity within declared services to the extent provided before a building completion certificate is issued. Similarly, service in relation to renting of immovable property, which was disputed in the case of Home Solutions Ltd, has been specifically included as a declared service. One major change under the new tax regime is the enhanced scope of levy in the case of residential complexes. Now, even a complex with two or more residential units will be subject to service tax, as opposed to 12 or more earlier.
RENOVATION COST The concept of taxing contract service related to construction continues under the new regime. However, the composition scheme, which adopted a concessional tax rate of 4.8 per cent under the erstwhile scheme, has been replaced with a concept of abatement to levy composition tax. Accordingly, though there may not be any significant incremental tax cost for new constructions, which are eligible for 60 per cent abatement, renovation of existing buildings may be impacted with a lower abatement of 40 per cent of the contract value. While the negative list will enhance and clarify the scope of taxability under service tax — many aspects of which were hitherto mired in litigation — questions over conflicting jurisdiction between service tax, stamp duty and VAT shall remain. Furthermore, due to the shift in the basis of determination for tax levy and lack of adequate guidance under the new regime, the real estate sector could potentially face new legal issues, such as taxability of services for immovable properties outside India (when the service provider and property owner are in India), or the treatment of projects under composition scheme. In a nutshell, while adopting the new tax regime, the real estate sector is still beset with questions that it hopes will be solved over time.
Source: NBTVLIVE

Property Listings

Apartments, Flats and Property for Sale in Bangalore

Sep 21, 2016
http://www.mahaveerzephyr.contact-us-now.com Mahaveer Zephyr is a residential development of Mahaveer Group. It is located off Bannerghatta Road,..
Sep 16, 2016
http://www.salarpuriasattvaopus.contact-us-now.com Salarpuria Sattva Opus has pre- launched Bangalore a Premium Gated Community Residential..
Sep 14, 2016
Goyal Orchid Whitefield project is spread across 7 acres of land and it offers 1, 2, 2.5 & 3 BHK housing apartments with comfortable..
Sep 08, 2016
For Sale: Newly const. 2 bhk. Area: 1272 sft. Level: F/Floor Car Park: 1 slot. Price: 1.05 Cr. Incl. 1 Car park & deposits..
Aug 30, 2016
http://www.codenamefiverings.contact-us-now.com Codename five rings is brand new venture of developer, nicely instituted at Sarjapur in Bangalore,..
Aug 29, 2016
http://www.legacyestilo.contact-us-now.com Legacy Estilo Bangalore offers 1, 3 and 4 BHK apartments for buyers and consists of 58 units in all...
Aug 24, 2016
http://www.peninsulaheights.contact-us-now.com Peninsula Land is now in Bengaluru, with a luxurious gated residential complex “Peninsula..
Aug 22, 2016
http://www.legacycelino.contact-us-now.com Legacy Celino is located in Thanisandra, Hebbal to Airport in Bangalore. Legacy Celino is currently a..
Aug 16, 2016
Bhadra Legacy is a modern luxurious living space at a premium location of Bangalore, MG Road. The 19 super luxurious apartments offers a..
Aug 11, 2016
http://www.godrej17.contact-us-now.com Godrej 17 brings to the market a wide range of apartments for families of all sizes at an affordable price..
spacer

Apartments, Flats and Property for Rent in Bangalore

Sep 16, 2016
Fully furnished Flat for Rent at Cookes Town ( Lloyd Road) 3 BHK with Car Parking, Lift, Power Back up, 24hrs water, Good Location with all..
Jul 25, 2016
The House available for Rent is in the First floor The locality of house is Near Koramangala and Outer Ring Road House No. 12, 19thA Cross, Near..
Jul 02, 2016
Flat for Rent at Cookes Town 2 BHK with car parking 24hrs water, Lift, Power Back up, Good Location with all Basic Fecilities. Rent0..
May 28, 2016
A spacious 3 Bedroom flat is available for Rent in Kadugodi, Bangalore. It is located on the 2 Floor. It has a covered area of 1650 Sq-ft. The..
May 24, 2016
2bhk ready to move closer too all basic needs closer to all IT CO. very good and safe..
May 02, 2016
Flat for Rent at M.G Road (Vittal Mallya Road ) 2 BHK Ground Floor Built up - 1340 sq feet, North Facing 24hrs water, Lift, Power back up, Good..
Apr 28, 2016
New Flat for Rent at Frazer Town 2 BHk with car parking Lift, power back up,24hrs water Good Location with all Basic Fecilities, Rent..
Apr 12, 2016
3bhk Pent House For Rent in Akme Ballet Apartment For 52k Call SAIF Size: 3BHK (2300sft) Area: Outer Ring Road, Dodda Nekundi, Bangalore Land..
Mar 19, 2016
Rs20000 / 2br - 1100m2 - 2 BHK house for rent (kundanhalli..
Mar 18, 2016
*SPACIOUS FLAT WITH EXCELLENT DAY LIGHT( NATURAL LIGHT) AND AIR CIRCULATION * Furnished with Sofa set, TV cabinet , Double bed , Exhaust Fans,..
spacer
spacer
spacer
spacer
spacer