Tds on purchase of property value 80 lakhs

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2014 My Client has purchased a flat value 80lakhs.
he has already paid 25lakhs in 3instalements from jan14, feb 14 & Mar14 without deduction of TDS.
Now for june demand i.r of rs 3.5 lakh he want to know can he deduct for whole amount which he already paid or what else he should do.now.

Any other formality kindly guide

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 July 2014 Deduct for the whole amount and remit it along with interest for late deduction and payment on the earlier installment paid.

If service tax and works contract tax were paid on the flat purchase the following opinion may be considered while making TDS.

Since sale of under construction flats, are taxed as Works Contracts under VAT and Service Tax, on the basis that property in goods is transferred as goods while contract is being executed, no scope is left for same sale of goods to be taxed again as sale of immovable property from builder to flat purchaser. This is because property in building materials is transferred before said goods become immovable as part of the building. Service portion of such works contract also can by no stretch of imagination be conceived to be sale of immovable property. This leaves only value of land contained in the price of flat, to be liable for being treated as sale of immovable property and new TDS shall be payable only to the extent of land price part of the total flat price.

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