DTZ

26 February, 2010

Union Budget 2010-11 addresses the real estate sector in many ways, the impact of which is latent at first comprehension. The service tax net has been widened to include the activity of construction as deemed taxable service provided by the builder to the prospective buyer during the construction period. The fate of STPI units has been jeopardised by its conspicuous absence in the speech of the minister. However, the impact of these changes could be significant if it means an end to the fiscal benefits provided to STPI units and rise in real estate prices due to service tax levy.

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