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2018 (12) TMI 1036 - CESTAT CHENNAIClassification of services - real estate agent services or not? - whether the assessee is liable to pay service tax on the developmental charges received for the service rendered as ‘Real Estate Agent’ to the members of the Society? Held that:- The appellant was indeed the seller of the housing plots to the members of the Co-operative society and had only received the sale consideration for the same without receiving any commission as Real Estate Agent thereof. Moreover, the developmental activities carried out by them would only be intended to fetch higher price for land and in any case, did not involve services to third parties - In any case, the appellant has sold the lands to the Co-operative Society at the rate of ₹ 136.36 per sqft. the same being the fixed rate of land by the statutory body. It is not the case of the Revenue that there was any extra payment/receipt as commission, which is not booked or that there was any cash transaction (on-money) involved over and above the booked amount - the appellant cannot be considered as Real Estate Agent for an amount not received since they have only acted as a ‘seller’ of the said land by virtue of Power of Attorney. The demand made under Real Estate Agent Service is unjustified - appeal allowed - decided in favor of appellant.
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