TDS on Property @1% inclusive/exclusive of Service Tax?

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  1. YUSUF ATTIA SHAMIM

    YUSUF ATTIA SHAMIM New Member

    Hello members, I had been outside India for about 15 years and just 3 years back booked a flat in Gurgaon, which is now under construction. I knew that we as NRI's are exempted from any type of Income Tax for what we earn and the money we deposit in our accounts. Just recently got to know about the 1% TDS and was surprised. I never thought such thing exists. The property i invested my money in is above 50 lakhs of value and payments are being made accordingly. When asked builder, he said yes as a buyer I have to deduct 1% of the due payment and pay TDS and 99% of the due payment to be made to them.

    I have two questions, (1) Is 1% TDS on the full payment, including Service Tax or only on the Basic payment. (2) Since June 1, 2013, 4 payments I already made, but never paid TDS, only now I am going to fill forms and start paying TDS, will there be any penalties.

    Please advise, help me getting these answers. Thanks.
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    TDS @ 1% is required to be deducted on the amount exclusive of service tax.
     
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