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Tds deductible on other payment for purchase of immovable property

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Anand

Accountant

99 Points Posted on 10 June 2022

I have purchase property in mumbai agreement value 3 Cr.

If I pay other amount of Club house membership, is it liable to pay tds on club house membership.

I paid TDS on 3 Cr. Now liable to pay tds on club house membership?

Replies (2)

Quick Summary

This discussion clarifies whether Tax Deducted at Source (TDS) is applicable on clubhouse membership fees when purchasing immovable property. The consensus is that TDS is generally not required on clubhouse membership if it's a separate service and not mandatory for the property purchase. TDS is primarily applicable to the agreed sale value of the property itself.

CA. ANKIT PANDYA

292 Points Posted on 10 June 2022

Not required. It seems to be altogether separate service and does not form part of Purchase of Immovable property.

Check the agreement, is it mandatory to subscribe for membership fees if you want to purchase property?

Moreover membership is something which is periodic (may be yearly) and that to it might be paid to the association / group / society under whose management club is operating and not to the person selling the property. You pay tds purely for the consideration which you have agreed on the sale agreement of property (i.e. on property value).