The Finance Ministry has included sections of construction under the list of services exempted from the purview of tax on services.
The exemption, a part of a list of 22 items in the negative list, includes construction, repair and alteration of specified public infrastructure projects, construction of a residential building of a single dwelling unit, and renting for personal dwelling.
In his Budget Speech, the Union Finance Minister Mr. Pranab Mukherjee said that the Government has proposed to tax all services except those in the negative list.
The list comprises 17 heads. The important inclusions in the negative list comprise all services provided by the Government or local authorities, except a few specified services where they compete with private sector. The list also includes pre-school and school education, recognized education at higher levels and approved vocational education, renting of residential dwellings, entertainment and amusement services and a large part of public transportation including inland waterways, urban railways and metered cabs.
under the Scheme of Affordable Housing in Partnership are also included in the exemptions. Mr. Mukherjee also proposed to raise the exemption for the monthly charges payable by a member to a housing society from Rs. 3,000 to Rs. 5,000.
Renting of personal dwellings is included in the negative list only to the extent of Rs 1. lakh per month per dwelling, to cover high end apartments.
The exemption, a part of a list of 22 items in the negative list, includes construction, repair and alteration of specified public infrastructure projects, construction of a residential building of a single dwelling unit, and renting for personal dwelling.
Negative list
The list comprises 17 heads. The important inclusions in the negative list comprise all services provided by the Government or local authorities, except a few specified services where they compete with private sector. The list also includes pre-school and school education, recognized education at higher levels and approved vocational education, renting of residential dwellings, entertainment and amusement services and a large part of public transportation including inland waterways, urban railways and metered cabs.
Low-cost mass housing
The Finance Minister Mr. Mukherjee also announced exemption of the services of business facilitators and correspondents to banks and insurance companies. Construction services relating to specified infrastructure, canals, irrigation works, post-harvest infrastructure, residential dwelling, & low-cost mass housing up to an area of 60 square meter.under the Scheme of Affordable Housing in Partnership are also included in the exemptions. Mr. Mukherjee also proposed to raise the exemption for the monthly charges payable by a member to a housing society from Rs. 3,000 to Rs. 5,000.
Renting of personal dwellings is included in the negative list only to the extent of Rs 1. lakh per month per dwelling, to cover high end apartments.
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