22 November 2013
As per section 194IA TDS deducted by purchaser. so on what amount TDS should be deducted by purchaser. Kindly provide defination of Total consideration as whether it includes following or not i.e.(society maintenance, VAT, Service Tax, & Stamp duty & registration fees collected & paid by builder)
22 November 2013
VAT ,service tax are in the nature of statutory obligations and do not form a part of consideration for transfer of immovable property , hence legally TDs shall not be deducted on these amounts by the transferee.
22 November 2013
I agree with Jatin on being legally tenable. However, it is advisable that you may deduct TDS on the full amount included VAT and service tax given that there is no specific instructions on deduction of TDS on service tax/VAT. In case department takes a different view, you end up being embroiled in protracted litigation and potential interest penalties.
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