Tds on sale of property

TDS to be deducted on all payments made to developer except service tax in case of sale of property by developer in under construction projects i.e. tds on service tax amount not applicable.

it is my interpretation. i want to confirm.

Replies (8)
Is dat a query or ur interpretation or a clarification from CBDT??

There are not one but two TDS sections

194I - on rent (where TDS deducted not on service tax portion of rent of property)

194IA - on sale of property (on the basis of sale agreement)

also addition if it is in Maharashtra  add VAT

As the wordings of the Sec 194IA is "Any sum" ...It includes service tax also 

My understanding is that buyer has to deduct TDS from amount paying June/13 on wards, if the property value (Sale consideration) is more than 50 Lakh. But when one of my client faced problem with registrar office when he went for registering his above 1 cr property and is deducted tds only from payment made to the builder from Jun/13 on wards where the registrar is insisting to show the TDS payment challan on whole property value. In this case, I want to understand more. Can anybody help me out?

Yes ur view is correct, On a reading of the section, it appears as if the trigger for section 194-IA is payment or credit of any sum for transfer of immovable property. Tax withholding should be restricted only to any payments made after June 1, 2013. Suppose for a property of 70 lacs if the purchaser pays 40 lacs before June,13 and remainig 30 lacs pays after June'13, Tax should be deducted only on 30 Lacs. (i.e Payments made after June'13)

tds  shall be deductable( including service tax) where ever it is mentioned "ANY SUM" in any of the sections of    t.d.s

 have querry by mistake i place buyer pan number into seller coloum how can i revert this tds credit please help me its urjent

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details