New Delhi, March 9
THE real estate industry has warned that the recent Union Budget announcement of imposing service tax on construction of residential complexes, coupled with the impact of increase in levies on steel could result in a 4-5 per cent hike in the cost of flats and apartments.
"The service tax will definitely result in an additional burden for the consumers. The 10 per cent service tax on construction of residential complexes will increase the cost of flats by 3-4 per cent. Combine this with the increase in duty on steel, and we could be looking at a total impact of 4-5 per cent," Dr Som Datt, President of National Real Estate Development Council (NAREDCO), said at a conference here.
The council also announced its 5th National Convention and Exhibition on March 11-13, in the Capital.