4.2
Service Tax on Real Estate Agent Services
Section 65 (105)(v) of the Finance Act, 1994 includes the services provided or to be provided by a real estate agent in relation to real estate in the ambit of taxable services. These services are taxable from October 16, 1998. This section discusses these taxable services in relation to their scope and taxability. The general aspects of service tax discussed in a separate section of this book are applicable. First let us find out who is a real estate agent and real estate consultant and what conditions they need to fulfill to be taxed under the services ambit.
Real estate agent
According to Section 65 (88) of the Finance Act, 1994 real estate means a person who is engaged in rendering any service in relation to sale, purchase, leasing or renting, of any real estate and includes a real estate consultant.
Essentials for a person to be a real estate agent
1. Any person engaged in rendering service in relation to
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