impact of service tax on real estate sector

[eagerinvestor]

Friends
how much impact does service tax have on real estate.does it have impact on land prices and home prices?inputs informative
thanks in advance
Regards
pc

[msn1270]

With the recent increase in Service Tax from 12.36% to 14% which is effective from today,
there is overall increase in the cost of Raw Material/interior Services/Flat costs.

Obviously all the housing developers will get another genuine excuse to increase the cost of their project immediately.