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?
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..
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
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.
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?
CAclubindia
