Wishing to enter the Real Estate Market? Here is the route map for you.

The Indian economy is known world wide as an agriculture based economy. Do you know what stands second to agriculture? Its Real Estate business. The Real Estate business today is one of the most cost effective and flourishing businesses in India. One of the reasons of growth of this business is increase in the middle class and increase of foreign investment into India.

Although the Building material suppliers, builders, labour suppliers, labour,architects, engineers, construction equipment providers and financiers play key role in Real Estate market, the most important amongst all are the brokers as they form the channel between customers and businessmen. They provide all the required information and advice along with establishing and negotiating the deal. If you are interested in starting your own Real Estate business, this article gives you all the required information.

The very first thing you must know about is Business Registration. Majority of the real estate agents do not register their business. One of the reasons may be that this business is spread through out the nation and has its roots not only in metro cities but in small towns as well. However, the agents should realise that now this business is being formalised and is matching the international standards. Therefore, it is advisable that if you are thinking of establishing a Real Estate Business, it should be established as a Private Limited Company or Limited Liability Partnership (LLP).

Service Tax Registration

The Service Tax Act defines the Real estate agent as "a person who is engaged in rendering any service in relation to sale, purchase, leasing or renting, of real estate and includes a real estate consultant."

Service tax is chargeable on any taxable service rendered by the real estate agent or consultant . For all the real estate agents having an annual taxable services of more than Rs.9 lakhs, service tax registration is made mandatory along with the collection of service tax from client in case the annual taxable billings cross the limit of more than Rs.10 lakhs, since the gross amount charged by the service provider is taxable at 14% as per the service tax act.

The Real Estate Agent and other Licenses

With Haryana being one of the first state in the country to establish licenses for agents, real estate agents have to pay a license fee of Rs.25,000 whereas a company would have to pay Rs. 50,000 for acquiring the licence. The amount of fee differs from state to state. Also the validity of license expires in certain period of time which can be renewed by paying the fee for renewal of the license. The real estate agent license has to be acquired from the concerned State Governments.

The real estate agents are also given the option of becoming a member of National Association of Realtors – India (NAR-India), which is a national level organisation and aims at heightening the standards of real estate business by maintaining ethics, transparency, accountability, and abiding by the rules.

If you need further information about the Real Estate Business, contact us at eFilingPortal.in