Tds on immovable property.

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MOHIT NIGAM (Querist)
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24 April 2016 Tds on immovable property is deducted on consideration being more than INR 50,00,000.

Does this consideration amount includes service tax component?
What will be treatment if agreement says property value being 49,50,000 + service tax. What will be consideration in this case and will tds be deducted?
What if the agreement says 51,00,000 inclusive of taxes?

Thanks
Mohit

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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24 April 2016 Think again... Is service tax is levied on sale of immovable property... ??? And as far as Vat concern... Vat is levied only on goods and land building are not goods..

MOHIT NIGAM

MOHIT NIGAM (Querist)
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24 April 2016 In case of buying a builder flat service tax is charged by the builder. My query is in relation to that.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 April 2016 TDS has to be applied on total consideration including taxes.

Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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24 April 2016 TDS is applicable in this case. One helpful article on this topic :

https://taxguru.in/income-tax/notices-related-tds-immovable-property-purchase.html

Abhishek Ranjan Singh
www.arssolutions.co.in
+919022838615

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Kaushik Joshi

Kaushik Joshi (Expert)
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25 April 2016 yes I agree with both the experts. tds is applicable in your case. however you can deduct and pay tds on amount excluding the service tax component. so in your case on 49.50 L

Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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25 April 2016 Mr. Kaushik Joshi
Are you sure TDS will be not deduct on Taxes? What will registration Value on the Paper?

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Kaushik Joshi

Kaushik Joshi (Expert)
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25 April 2016 As far as Circular 01/2014 dated 13.01.2014 goes, it specifically States to exclude service tax while computing tds in terms of an agreement or contract. So in my opinion no tds is required to be deducted on service tax component. As far as other charges are concerned, I'd suggest to include them while computing tds.

Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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25 April 2016 Yes you are correct if No TDS on service tax if it is shown separately. But some time in registration paper it is not separately so as per my opinion it is better to deduct TDS on it. What do you say?

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Kaushik Joshi

Kaushik Joshi (Expert)
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25 April 2016 yes there is no harm in deducting tds on the entire amount including service tax.

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