Noida flat owners demand tax exemption
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Noida flat owners demand tax exemption

Ahead of Union Budget 2016-17, Noida residents want the Centre to either raise the tax exemption limit on maintenance charges or scrap the tax altogether.

Noida flat owners demand tax exemption

The residents of Noida housing societies have urged the Central Government to revise the service tax on society maintenance charges. The request came in response to Finance Minister Arun Jaitley’s call for suggestions for the Union Budget 2016-17.

According to service tax rules, a contribution of Rs 5,000 and above per month towards maintenance attracts 14.2 per cent service tax, while that below Rs 5,000 is exempt from it.

Alop Mittal, treasurer of Parsvnath Prestige-II, Sector 93A, told City Spidey that the Government should either raise the exemption limit or abolish the service tax altogether. He wants the exemption limit raised from Rs 5,000 to Rs 8,000.

Mittal termed the service tax as undue burden on owners of bigger apartments who pay more by way of maintenance charge as compared to those with smaller flats for same services.

“This,” he said, “causes disquiet among the residents who own bigger flats.”