TDS on amenities like electriity / transformer

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This query is : Resolved

Quick Summary

When purchasing an under-construction flat, builders may charge for amenities like transformers. If this charge is part of the overall property cost and the total payment to the builder exceeds Rs 50 lakh, you will likely need to deduct TDS on this amount. This applies to all payments related to the property purchase, not just the base price of the flat.

Uday Kumar

Uday Kumar (Querist)

18 April 2025 sir
i want to know that -- i am purchasing under construction flat and builder is asking Rs 60000/- for transformer of our building so want to know whether TDS to be deducted on Rs 60000/- thousand or not
Thanks

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

18 April 2025 Regarding the Rs 60,000 charged by the builder for the transformer of the building, this amount is generally considered an additional charge related to the property. If this charge is part of the total consideration payable to the builder for the flat or the building amenities, TDS should be deducted on this amount as well, provided the total payment to the builder exceeds Rs 50 lakh. The TDS obligation applies to all payments made to the builder related to the property purchase, not just the base flat price.

Uday Kumar

Uday Kumar (Querist)

20 April 2025 Thank you so much sir

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

21 April 2025 You are welcome.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

28 September 2025 Good luck.....

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