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Query: TDS on sale if property.
Client is paying as per construction linked plan as below:
Basic installment Rs 1364256
Service Tax Rs 42308
EDC Rs 181000
Total Rs 1364306.
Whether tds of 1% will be deducted on total amount or only on Basic instalment |
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The Section says any sum by way of consideration for transfer of any immovable property (if such total consideration is fifty lakhs or more). Till date there has not been any clarification on your issue and hence it will be prudent to deduct on whole amount as the other party will get credit of TDS so deducted. |
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I am agree to the reply made by Mr.Mohit Katyal to the context that there is no clarification on this issue but according to Circular No.01/2014, TDS is not required to be deducted on service tax portion.
Hence, TDS shall be deducted only on basic amount i.e., amount excluding service tax. |
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TDS should be deducted only on the amount paid as consideration for acquiring property. In my opinion TDS should NOT be deducted on service tax portion or any amount paid as stamp duty etc.
The purpose of revenue is to collect tax on the amount received by the seller as sale consideration. |
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