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Sale of property

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Goutam Sen

20 Points Posted on 09 March 2021

I want to sell old residential house, whether goods and service tax is to be charged on the sale price. Please let me know,

Replies (3)

Quick Summary

When selling an old residential house, Goods and Services Tax (GST) is generally not applicable, especially once a completion certificate has been issued. However, if the sale price exceeds £50 Lakhs, the buyer is required to deduct Tax Deducted at Source (TDS) at a rate of 1% and deposit it. For capital gains tax calculations, if the property was purchased before April 1st, 2001, or is ancestral, the property's DLC rate as of April 1st, 2001, will be used as the purchase price.

CS M Pota

Company Secreatary

20 Points Posted on 09 March 2021

There is no applicability of GST. GST is applicable up to the date of issuance completion certificate.Once completion certificate issued the property is constructed and there is no applicability of GST.

CA HARSHITA AGARWAL

FCA

20 Points Posted on 09 March 2021

No GST is not required on sale of house property.

A. However, if you are selling the property for more than Rs. 50 Lacs,

1. The buyer will need to deduct a TDS @ 1% of total sale amount while paying you the amount.

2. He need to deposit the TDS amount deducted within 7 days from end of the month in which payment is made through Form No. 26QB (online)

3. He need to mention the PAN No. of all the buyers and sellers.

B. Please mind that if the property is purchased by you before 1st April 2001 or is an ancestral property the DLC rate of the house as on 01.04.2001 will be considered as purchase price for purpose of calculating the capital gains on the same.

Hope it will be helpful for you. for any further clarity you can mail me on caharshita81 @ gmail.com

Thanks