REAL ESTATE AGENT

 

Date of Introduction: 16.10.1998 vide Notification No.53/98-ST dt.07.10.1998.

 

Definition:

 

A “Real estate agent” means a person who is engaged in rendering any service in relation to sale, purchase, leasing or renting, of real estate and includes a real estate consultant.

(Section 65 (56) of Finance Act, 1994 as amended)

 

“Real estate consultant” means a person who renders in any manner, either directly or indirectly, advice, consultancy or technical assistance, in relation to evaluation, conception, design, development, construction, implementation, supervision, maintenance, marketing, acquisition or management, of real estate.

(Section 65(57) of Finance Act, 1994 as amended)

 

Taxable event & Scope of service:

 

Taxable service means any service provided to a client, by a real estate agent in relation to real estate. (Section 65 (72) (v) of Finance Act, 1994 as amended)

 

Some international realty concerns, such as Richard Ellis, Colliers and Jardine etc. have opened shop in India and they are providing comprehensive realty services. Apart from the traditional services in respect of sale/purchase/leasing of real estate such concerns are, inter alia, providing services to real estate developers and promoters in respect of evaluation of a proposed real estate scheme/project by conducting techno-economic studies, providing feasibility reports and by even helping in marketing real estate projects. Such services shall also attract Service Tax.

(Ministry’s F.No.B11/3/98-TRU dt.07.10.1998)

 

Value of Taxable Service:

 

Value of the taxable services shall be the gross amount charged by the service provider for such service rendered by him. (Section 67 of Finance Act, 1994 as amended)

 

 

Exemption & Exclusion:
 

The activity of actual construction of any building, carried out by builders/developers would not attract Service Tax levy, as it is not a service within the meaning of the term real estate agent or real estate consultant. (Ministry’s F.No.B11/3/98-TRU dt.07.10.1998)

 

 

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