10 December 2009
Whether TDS is to be deducted if a person is selling a capital asset say a house property. Not in the nature of business but he is being selling such assets in the past 2 to 3 years but not as a business asset (say 1 property every year). The query is if he is paying commission to an agent to sell the property whether he is liable to deduct TDS on such commission paid? According to me it should not be. Please give me a reference to case law if possible.
If the asset is sold using the services of an agent, then the agent would issue a bill for professional services. This is commonly understood as commission. Depending on the nature of the entity raising the invoice and the value of the fees, TDS has to be deducted.
14 December 2009
Thank you. But would the activity of selling such capital assets amount to business activity, as the said assessee is selling such capital assets on a regular basis in the previous few years, though it is not his business. Such capital assets are inherited by him & he is being selling them every year?
16 December 2009
If a concerned person is trading regularly i.e purchasing and selling, it can be termed as business but he is just selling the properties what he has inherited it can not be termed as business.
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