Should gst be excluded in rs 50 lacs limit u/s 194ia ?

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Ankosh (Querist)

28 August 2018 Should GST be excluded from consideration value for determining the threshold exemption limit of Rs 50 lacs u/s 194IA. Please support your answers with a Circular / Notification or Case law.

There is a CBDT circular which clarifies that if GST is indicated separately, TDS shall be deducted on amount excluding GST. This circular clarifies the 'quantum' on which TDS shall be deducted. However, the question here is whether TDS is applicable or not in certain scenario, where flat cost does not exceeds the threshold of Rs 50 Lacs without taxes, but it do exceeds the threshold with taxes.

Real life scenario for a under construction property:
Consideration value without GST = Rs 49 Lacs (ie: below Rs 50 Lacs)
GST = Rs 5 Lacs
Consideration value including GST = Rs 54 Lacs (ie: above Rs 50 Lacs)

Ankosh

Ankosh (Querist)

03 September 2018 Experts, please share your opinion here.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

27 September 2021 As the consideration of property is 49 lakhs, by which the sale agreement is made, value on which stamp duty paid, ............ TDS not applicable.

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