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Service tax applicability in case of hakk sod patra

Queries 570 views 2 replies
Dear Members,
 
One of my client is a real estate agent. He pays money to land owner as a consideration of "Hakk sod patra" i.e. consideration for relinquishment of right in land. He receives same amount of money from his principle for the same.
 
Whether service tax is attracted in above scenario?
Replies (2)

1st of all be aware that such transactions attract "stamp duty" on the valuation as per state laws, and its clear that such diff money is short term or long term capital gain, as the case may be, 

in absence of such registered deed, the person may face case of money laundring, service tax comes far later 

In absence of any consideration regarding the service provided,activity is not a service hence Service Tax is not  leviable.


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