LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Taxable Value for Real Estate Agents

rajeev (owner) (26 Points)

11 January 2011

What is the value of Real-Estate commissions (FY 2010-11) received, on which the Service Tax becomes taxable.

"Valuation of Taxable Services for charging service tax" on real estate commissions received as an agent, as applicable for FY 2010-11 ending March-2011.

Earlier, i guess it was Rs. 8 lacs beyond which it became taxable for serv.tax.

Reply
Follow
Share

2 Replies

Suren (CHARTERED ACCOUNTANT) (397 Points)
Replied 11 January 2011

THE LIMIT IS TEN LAKH FOR CHARGING SERVICE TAX AND NINE LAKH FOR REGISTRATION UNDER SREVICE TAX

Madhukar N Hiregange (Chartered Accountant) (38934 Points)
Replied 11 January 2011

The taxable services provided in the previous year [ 2009-10] should not have exceeded Rs.10 lakhs. If so then in the current year based on receipts of taxable services, after 10 lakhs liability arises. Since there could be a time gap between the billing and receipt, it maybe advisable to start charging ST from 9 lakhs tislef to avoid a situation of paying the St out of pocket.