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wornsphinc · 13-03-10

First of all I have recently brought an apartment in Noida and I spoke to lot of brokers in the process of doing so. This is my understanding of how this thing works, but I may be wrong......

Dealers/brokers are given a commission to sell apartments in a project. The commission is more if they achieve a milestone like 50, 100, 150 flats. Brokers give a discount on the price published by the builder to get more sales, so that u book the house through them. However the price written on the application form is normally the price published by the builder. The gives you a note on the company's letter head that he would give you a discount [ranges from 2% to 10% of BSP]. However the cheque would be given to you when 40% of the payment has been made to the builder by you. The builder than releases the brokers commission and after recieving that the broker than issues you the cheque. He also deducts TDS on this ammount, as the broker has to pay Tax on this income [so he alleges].

My knowledge is limited [hoping for more views], but I hope this helps.....

13-03-10	#2
wornsphinc New Member Join Date: Feb 2010 Posts: 19 Thanks: 0 Thanked 0 Times in 0 Posts	Dealer Discount First of all I have recently brought an apartment in Noida and I spoke to lot of brokers in the process of doing so. This is my understanding of how this thing works, but I may be wrong...... Dealers/brokers are given a commission to sell apartments in a project. The commission is more if they achieve a milestone like 50, 100, 150 flats. Brokers give a discount on the price published by the builder to get more sales, so that u book the house through them. However the price written on the application form is normally the price published by the builder. The gives you a note on the company's letter head that he would give you a discount [ranges from 2% to 10% of BSP]. However the cheque would be given to you when 40% of the payment has been made to the builder by you. The builder than releases the brokers commission and after recieving that the broker than issues you the cheque. He also deducts TDS on this ammount, as the broker has to pay Tax on this income [so he alleges]. My knowledge is limited [hoping for more views], but I hope this helps.....