Additional Burden on Apartment Buyers with Service Tax
Apartment buyers, already struggling with rapidly increasing property rates, are now facing another financial strain. Since last month, several developers have started demanding buyers to pay the service tax introduced in the Union Budget 2010, which amounts to a 2.5% tax.
Impact on Buyers
This service tax will only be applied to under-construction residential projects or properties that have not yet received their occupation certificates. Some sources have revealed that certain developers have admitted to asking purchasers to pay this tax.
Buyers' Concerns
Buyers are expressing their dissatisfaction, stating that they were not informed about this additional taxation at the time of booking their flats. A market source has disclosed that although buyers are voicing their objections to this move by builders, they have limited choices. Given that they are already obligated to pay development charges, society fees, substantial parking charges, and other miscellaneous charges, they may have to comply with this new tax requirement as well.
