TDS on Immovable Property

[Fortune Procurators]

Proposed purchase of Office Premises:

Agreement Value : 90,00,000

Stamp Duty : 540000

Registration Fee : 30000

Service Tax 378000

Vat : 90000

Security Deposit - 100000

Maintenance - 100000

Total Value 10238000

Kindly suggest on which amount we have to deduct TDS @ 1%

[Ganeshan Kalyani]

TDS is deductible from the payment to be made to the contractor and hence whatever payment you would be doing to the contractor TDS would be deductible from such payment.

[KASTURI SETHI]

Sir,

I do not know about TDS/Income Tax. From your reply dated12.12.2015, it can be deduced that, in other words, no TDS can be deducted on stamp duty, registration fee, Service Tax,(TDS is part of taxable value on which service tax payable), Vat/ security deposit. and TDS is to deducted on maintenance charges because it is income. Am I right ? Where I am in the wrong ?

Thanks in advance.

AI Summary

TDS on property payments: deductible from contractor's payable consideration; statutory charges and deposits excluded; maintenance may attract deduction. TDS is deductible from the payment made to the contractor or seller and is calculated on the amount payable to that party. Statutory or incidental payments-stamp duty, registration fee, service tax, VAT and security deposit-are not subject to TDS in this context. Maintenance charges constitute income to the recipient and may attract withholding tax.