Mumbai: The government has withdrawn service tax exemption provided to construction of greenfield airports. This will make construction of new airports at Navi Mumbai and Goa more expensive.
In his budget speech finance minister Arun Jaitley announced the withdrawal of exemption to construction, erection, commissioning or installation of original works pertaining to an airport or port.
"Till now there was an exemption on paying service tax in construction of greenfield airport. With the exemption withdrawn developers would have to pay tax on consultancy, technical services or hiring of labour from contractors. This could push up the construction costs by as much as 4%," remarked a senior executive from a private company engaged in airport development.
28/02/15 Business Standard
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In his budget speech finance minister Arun Jaitley announced the withdrawal of exemption to construction, erection, commissioning or installation of original works pertaining to an airport or port.
"Till now there was an exemption on paying service tax in construction of greenfield airport. With the exemption withdrawn developers would have to pay tax on consultancy, technical services or hiring of labour from contractors. This could push up the construction costs by as much as 4%," remarked a senior executive from a private company engaged in airport development.
28/02/15 Business Standard
