- Service Tax Policy No. 3/2026 gives a temporary exemption from 1 July 2026 for service tax on maintenance charges and sinking fund contributions for non-residential premises/buildings charged by JMBs or MCs.
- During this interim period, JMBs/MCs do not charge or collect service tax on these charges, and property owners do not pay it.
- The exemption does not cover taxable services bought by JMBs or MCs from third-party providers; service tax still applies to those services.
- Once the Service Tax Regulations 2018 are amended, maintenance charges and sinking fund contributions for both residential and non-residential properties will be exempt from service tax.
- The exemption is not retroactive, so any service tax due for periods up to 30 June 2026 remains payable.
Source: taxathand.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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