Service Tax on sub brokerage recd by/from a real estate broker

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  1. Sunilhotmail

    Sunilhotmail New Member

    Hello And Happy New Year to All,
    This is a case where a real estate broker has a Service tax registration, and receives consideration as brokerage/sub-brokerage (acting as a sub-broker in this case) from another Broker who is the service provider and has received brokerage from the service receiver.

    Is the sub broker liable to charge/collect and pay service tax on receipt of such sub brokerage?
    Thanks and Regards
  2. Sunilhotmail

    Sunilhotmail New Member

    In case service tax is not applicable , please help with specific clause/section in the service tax act.
  3. gaurav_kumar

    gaurav_kumar Well-Known Member

    Yes, Service Tax is applicable in this case and the sub-broker should collect the Service Tax from the main broker.

    However, in case the total value of services provided by the sub-broker in the year is less than Rs. 10 Lakhs, he can claim small scale exemption and the service tax would be exempted in this case.
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