Tds on sale of property

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P Venkata Devaraj

Project Mgr.

44 Points Posted on 20 March 2014

Hi,

I have booked an apartment in a housing project. I am expected to make payment in instalments after every stage of completion as agreed earlier.

I have now received a request to pay an instalment on completion of 9th floor.

The cost for Flat is Rs. 5,78,728/-

And the service Tax is Rs. 29,454/-

Total amount to be paid is Rs. 6,08,177/-

My query is on which amount should the TDS of 1 % be deducted ?

Whether it is on the cost of Flat of Rs. 5,78,728/- or on the Total amount including Service Tax of Rs. 6,08,177/- ?

Appreciate if you could clarify the above point.

Regards

Devaraj

Replies (5)

Tarun Kumar G

Accountant

69 Points Posted on 20 March 2014

On cost of Flat

Mihir

Wealth Manager

5358 Points Posted on 20 March 2014

The value of property should be above Rs. 50 lakhs.

Girish C Gaikwad

Chartered Accountant

48 Points Posted on 20 March 2014

As per Circular No. 01 /2014, CBDT clarified that tax need not be deducted at source on the service tax component on payments made/due to a resident payee provided service tax amount is shown sepratley in invoice.

So in your case, deduct tds on cost for Flat that is Rs. 5,78,728/-.......provided total consideration is more than Rs.50 Lacs ( I have assumed that you are paying just installment)

P Venkata Devaraj

Project Mgr.

44 Points Posted on 20 March 2014

Thanks Girish for the clarification.

Yes the cost of the flat is more that rs 50 Lacs. I only gave the instalment amount for example.

Can you share the CBDT circular you are referring to to my email id devaraj.venkata @ techmahindra.com

Frederic M

staff

26 Points Posted on 25 March 2014

Losing your home somehow makes you feel sad specially if you are in debt. But somehow if you had a lot of property and some of it you didn't use you can turn it to reverse mortgage. Not all of us can avail on reverse mortgage because it was applicable only to those who turned 60 yrs old or more than that. Get help while waiting for a reverse mortgage with a short term loan.