The urban development ministry will seek a review of the proposed service tax levy on sale of housing projects under construction. The levy has been proposed in Budget 2010-11.
“The urban development ministry feels the proposal of service tax needs review. I am recommending the review of the proposal,” Urban development minister Jaipal Reddy told reporters here on Friday.
Finance minister Pranab Mukherjee in the Budget 2010-11 brought development of real estate complexes under the ambit of service tax unless the entire payment for the property is made after completion of construction.
“I think the real estate sector in India is not in pink of health right now and we cannot afford to add pressure on that,” he said, adding that recommendation would be made to the finance minister in the next few days.
The Economic Times