Property purchase in India by NRIs and Persons of Indian Origin (PIO) is governed by the Foreign Exchange Management Act (FEMA). The FEMA regulations permit a NRI or a PIO to acquire immoveable (residential and/or commercial) property in India. The general permission, however, covers only purchase of residential and commercial property and is not available for purchase of agricultural land, plantation property or farm house in India. Further, there are no restrictions on the number of residential / commercial properties that can be purchased (please also refer to restrictions on repatriation of sale proceeds later in this note).
Service tax is payable only on property purchase directly from developers and is not required in case of resale property purchase as there is no service provided.