Tds on sale of immovable property (sec 194ia) Simplified

Tax planning 144927 views 80 replies

Good article.. Thanks

hello sir 

 

u get ans for this query

 

pls u rcvd any clearification then share with me

 

 

i have face same problem

Originally posted by : Ashok
Dear Nitesh

I am buying an under consturction property for 73 lakhs. The amount is split as Construction agreement and Sale Agreement. The construction agreement cost is 52 Lakhs. The Sale agreement cost is 21 Lakhs. So sale deed will be for 21 Lakhs only (and that is the guideline value of the UDS sold). 

Will TDS payment requirement be applicable based on Construction Agreement?

If it is only on Sale deed, then my sale deed amount is only 21 Lakhs - it is less than 50 lakhs. So am I exempt from TDS on pruchase of property.?

It so happens that the total value of the property is what is taken into consideration. I have paid TDS for the entire value of the property (21 lakhs plus 52 lakhs =73 lakhs @ 10% = 7.3 lakhs). This excludes Service tax part in the Construction Agreement (dont need to pay for that).

in case of purchase from non resident i have to tke TAN no. for payment of TDS?

How to make payment of TDS in case Seller is NRI?? As Sec 112 in connection of 195 have to read, where 20%+Surcharge+Cess have to be deducted & paid??

Form 27Q required to fill?? but it is not in electronic form so how to proceed for payment??

Dear Nikhil ji, even I am facing a similar issue. Whether Service Tax / GST should be excluded while determing the threshold of Rs 50 Lacs u/s 194IA. 

 

You opinied above that indirect tax should not be considered in consideration. Is there any case laws or circular supporting this. I know there there is CBDT circular which states that TDS is to be deducted on amount without GST, if GST is indicated separately. This circular clarifies the 'quantum' of value on which 1% TDS should be deducted, but it is not clear whether or not indirect taxes should be excluded from consideration value for determining the limit of Rs 50 Lacs exemption threshold.


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