The impact of introduction and later increase and coverage of service tax has had far reaching effects on buyer sentiments and builder sales alike.
However, if that was not enough, we could well see another such surcharge on installments for an under construction property in the name of Swach Bharat Cess.
While the same is capped at a maximum of 2%, it is likely to follow the same regime of (2/4) i.e. 0.5% on few heads and 2% for the rest.
Clarification is also sought from Government as to whether this cess would be applicable over service tax (i.e. say 2% over 14%=14.28%) or the actual amount (2% of actual amount).
Although not as influential as service tax, this is sure to burn a hole in one’s pocket.
As we await the exact implication of this cess, if applicable on actual amount, it is definitely likely to cover maintenance charges and club membership.
Whether it actually covers the other services along with these is yet to be seen.
Also note that the enactment date for this cess is most probably going to follow the enhanced service tax notification date.
Last updated: April 1, 2015 at 15:36 pm