Rs 50 lakhs threshold in tds 194ia
This query is : Resolved
03 September 2018
I bought a under construction flat whose value without GST is below Rs 50 Lacs, but the value exceeds Rs 50 Lacs with GST.
Should I deduct 1% TDS ?
There is a CBDT circular which clarifies that TDS is to be deducted on amount excluding GST, if GST is indicated separately. While this circular clarifies the 'quantum' on which 1% TDS should be applied, but it does not clarifies whether or not GST should be excluded from consideration value for the purpose of scoping TDS applicability (Rs 50 Lakhs threshold).
Please share your opinion with any case law or guidance issued on this matter.
Should I deduct 1% TDS ?
There is a CBDT circular which clarifies that TDS is to be deducted on amount excluding GST, if GST is indicated separately. While this circular clarifies the 'quantum' on which 1% TDS should be applied, but it does not clarifies whether or not GST should be excluded from consideration value for the purpose of scoping TDS applicability (Rs 50 Lakhs threshold).
Please share your opinion with any case law or guidance issued on this matter.
03 September 2018
Experts, please share you opinion with any case laws or guidance note or any detailed explanation please.
Dhirajlal Rambhia
(Expert)
27 September 2021
Take your sale deed /agreement value, if GST is specified separately, no need to include it for TDS limit.
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