| Q.1 |
Who is Real Estate
Agent and Real Estate Consultant? |
| Ans. |
"Real estate agent"
is 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.
"Real estate consultant" is 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. |
| Q.2 |
What is the taxable
service in case of Real Estate Agent? |
| Ans. |
Taxable service means
any service provided to a client, by a real estate agent in
relation to real estate.
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. It would include comprehensive realty
services provided by International realty concerns, who are
providing such services in India. |
| Q.3 |
What is the value
of the taxable service in case of Real Estate Agent? |
| Ans. |
Value of the taxable
services in relation to the service provided by a real estate
agent to a client, is the gross amount charged by such agent
from the client for services rendered in connection with the
sale, purchase, leasing or renting of real estate including
any advice, consultancy or technical assistance relating to
evaluation, conception, design, development, construction, implementation,
supervision, maintenance, marketing, acquisition or management
of real estate. |
| Q.4 |
Would the services
of actual construction of any building carried out by the builder/
developer be liable for payment of service tax under the category
of service provided by the real estate agent or real estate
consultant? |
| Ans. |
No, 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. |
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