Service tax on brokerage on mou pf selling property
This query is : Resolved
08 November 2014
We are a real estate firm who sell flats in residential complex. We have signed a MOU with a marketing pvt. ltd. firm. for example we are selling flats at 2000 rs./sq.ft. and we alloted them the same @ 1700 Rs./ sq.ft. it means this 300rs. is commision/brokerage. so now what are the responsibilities of service tax to that pvt. ltd. company and how we should treat it in our books . and what about the TDS....??
CA CHIRAG DOSHI
(Expert)
08 November 2014
Dear Nihkhi,
In your case are you going to sale to that marketing pvt ltd co. then in that case sales will be effected so no service tax and tds,
but if you appoint them as your agent then service tax will be applicable once you crossed threshold limit of Rs. 10lacs and tds on payment of rs.5000 and above u/s 94H
CA Chirag Doshi & CO.
9833027231
In your case are you going to sale to that marketing pvt ltd co. then in that case sales will be effected so no service tax and tds,
but if you appoint them as your agent then service tax will be applicable once you crossed threshold limit of Rs. 10lacs and tds on payment of rs.5000 and above u/s 94H
CA Chirag Doshi & CO.
9833027231
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