Question13: Is service tax applicable
on real estate agents for selling power of attorney lands'
They take possession of land for sale under power of attorney, pay them some
amount, then sell the same and show the income as profit from sale of power of
attorney lands in their P&L Account.
Whether this income shown as profit from sale of power of attorney lands will
attract service tax. Please clarify.
Answer The Person in your case is doing sale & purchase of property. The
route of Power of Attorney is adopted to bypass the registration expenses. The
person doing sale & purchase is not getting commission from the original owner
of the property rather he is getting profit or suffering loss as the case may
be. so it is not as Service. (Reply dt. 13/4/2018)