In the current budget the service tax has been exempted for 17 items in the negative list. It reads like this:
The Finance Minister Shri 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, and low-cost mass housing up to an area of 60 sq.mtr. under the Scheme of Affordable Housing in Partnership are also included in the exemptions. Shri 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.
Residential dwelling is written in the negative list but no body is talking about this. I have booked a flat. Do I have to pay service tax if I pay to the builder after 31st march 2012.
Kindly advise.
