280
Service Tax on Real Estate Agent Services
[Chap. 4.2]
2. 3. 4.
sale, purchase, leasing or renting of any real estate it includes a real estate consultant.
Real estate consultant
According to Section 65 (89) of Finance Act 1994, a 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. As it is amply clear from the above the definition is very wide and anything and everything done in relation to real-estate by a consultant or agent can be brought to the tax net. It is very difficult to think of an activity which may fall outside the above definitions. Real estate agent services will also include services provided in addition to the traditional services, to real estate developers and promoters in respect of evaluation of proposed real estate scheme /project by conducting techno-commercial studies, providing feasibility reports and by even helping in marketing real estate projects. (CBEC Circular F. No B-11/3/98-TRU dated October 07, 1998).
Definition of real estate
Real estate can be defined to mean land with anything permanently affixed to land. According to the Compact Oxford Dictionary, ‘real estate’ means real property and land. Taxable Service Section 65(105)(v) of the Finance Act defines the taxable service as any service provided or to be provided to a client by a real estate agent in relation to real estate.