Shop Act registration is governed by state government. Under Shop Act Shop” means any premises where goods are sold, either by retail, wholesale or where services are rendered to customers. As agent rendering services need to take Shop Act registration. Recently with technology government has made process of Shop Act registration for Real estate agent simple. Shop Act for real estate agent can be taken on residential premises also.
Income tax filing is mode where person declares income earned during year and tax paid if any. Provision of income tax Filing is mandatory where Real Estate agent who has a total income that exceeds the exemption limit is liable to file Income Tax return. Agent filing return with in due date can revise return if needed. Under section 234 F of Income Tax Act 1961 for non filing of ITR penalty upto Rs. 10000/- is applicable.
Real estate rera agent business income come from commission income on sale of property. Services provided by agents assistant on sale / Purchase of properties such as
On sales/purchases agents earns income by way of commission / brokerage. As agent are engaged in supply of services and shall be liable to do GST Registration for Real estate agent. However GST is mandatory only if his/her turnover crosses Rs. 20 Lac.
For Example : Mr. A is providing services as real estate agent and his turnover for FY 2018-19 from income earned is crossing Rs.20 lac then said persons shall be liable to get GST Registration.
Professional Tax registration is governed by state government. In India most of state having there Professional Tax Act for persons doing business in that state. In Maharashtra persons Like Traders, Professional etc. is liable to take registration. Real Estate Rera agent provids professional services for sale / purchase of properties. Hence they Professional Tax Registration For Real Estate Rera Agent is required. Real estate agent need to pay yearly Rs. 2500/- as Profession Tax to Maharashtra state Government.
TDS stands for Tax Deduction at source. Services provided by Real Estate agent falls under Section 194H of Income Tax Act 1961. This section is for TDS on any income by way of Brokerage or commission. Recipient of service will deduct TDS and pay balance amount to agent.
|Real Estate Agent having PAN No.||5%|
|Real Estate Agent Not having PAN No.||20%|
For Example : Mr. A send bill of Rs. 100,000/- to M/s XYZ Ltd for brokerage. M/s XYZ Ltd shall deduct TDS at 5 % that is Rs. 5000/- and transfer balance amount to Mr. A that is Rs. 95000/-
Rera Registration For Real Estate Agent is applicable where agent dealing in RERA prosperities. Even for dealing in old propertied agent need required Rera Agent registration. Government fees for Individual agent registration is 10690/-. Agent dealing RERA property in Maharashtra required to take registration. Rera agent registration process is complete online and take 7-10 days to obtain certificate. RERA registration will bring accountability between agent and investors.