Q:In Mumbai housing society, where builder's sales person helps owner to rent out his/her apartment can charge tax on the commission they get from the prospective tenant? Is it legal?
Latest Answer: Hello, Praveen Modi
Thanks for replying to my question. There is a well-known builder in Mumbai area and they have quite a few apartment buildings around Mumbai. As I am looking for rental property, I talked to one of their sales office who is helping some of the owners in renting out their newly purchased flats to prospective tenants. They told me that they charge commission plus tax of 12. 36% (or so) on the commission amount that they get from the prospective tenants. If they are doing this, is it illegal? Should this be notified to some Government authority?
I was wondering are you quite familiar with real estate issues? The reason I asked because I have another question in which I need some guidance and would like to post that question here.
Yamini Mehta
