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TDS ON PURCHASE LAND

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sona1

MANAGER

373 Points Posted on 17 November 2021

XYZ PVT LTD (GST Registered Company)will Purchase a LAND from Amal Das(individual) which Value Come Rs. 50,50,000.00 and Payment will made Installment basic which shown below:

5,00,000.00 (First Installment )

10,00,000.00(Second Installment)

25,000,00.00(Third Installment)

10,50,000.00(Final Installment)

Now our Question is 1) XYZ PVT LTD will deducted TDS against this Installment payment to Amal Das? If Yes then which Section applicable against this and send us Total Procidure.

2) GST RCM will applicable against this transaction?

Replies (3)

Quick Summary

This discussion clarifies the applicability of Tax Deducted at Source (TDS) when a GST-registered company purchases land from an individual. It confirms that TDS under Section 194 IA of the Income Tax Act is applicable on land purchases exceeding ₹50 lakhs, regardless of payment being made in instalments. The query also addresses Goods and Services Tax (GST) implications, stating that Reverse Charge Mechanism (RCM) is not applicable to this transaction.