Thursday, November 13, 2014

Effects of GST on Properties Next Year

My question still remains, are serviced apartments, which hold commercial titles exempted from GST? Since they follow Schedule H which recognizes them as residential properties, are serviced apartments exempted? Nobody is able to answer me till today.... Nevertheless, GST will still cause a nett rise in property prices through the spiral effect.

Residential property prices to rise 3% to 4% after GST

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KUALA LUMPUR: Residential properties are exempt rated but the net impact from the implementation of the goods and services tax (GST) will cause their prices to rise 3% to 4% after the consumption tax comes into play next April, said Mah Sing Group Bhd executive director Datuk Steven Ng Poh Seng.
The estimation came after the group had a dialogue with its contractors, he told pressmen after the groundbreaking ceremony of the Southville City Direct Interchange project yesterday.
As for commercial properties, buyers will be charged the full 6% GST as they are “standard-rated” items, he said.

1 comment:

john said...

It is a residential unless operates as a hotel. Based on usage.