Will TDS under section 194Q be deducted on GST amount also?

Accordingly, similar ratio shall be applied on transaction under Section 194Q, that if the component of GST comprised in the amount payable to the seller is indicated separately, tax shall be deducted under section 194Q of the Act on the amount credited without including such GST.

Is it mandatory to deduct TDS on sale of property?

Rate of TDS on Sale of Property TDS on Sale of property is required to be deducted @1\% if the property value is more than Rs. 50 Lakhs. This TDS is required to be deducted for all transactions after 1st June 2013 if the property transaction value is more than Rs. 50 Lakhs.

Is GST applicable for sale of property?

Levy of GST on immovable property or Real Estate The notion that GST is not exigible on immovable properties is false. Although, Schedule III mentioned in Section 7 (2) (a) of CGST, 2017, specifies sale of land and building as one such activity, which is kept outside the scope of GST[1].

Which section deals with the TDS provision in GST?

section 51
Under the GST regime, section 51 of the CGST Act, 2017 prescribes the authority and procedure for ‘Tax Deduction at Source’. Deposit of TDS with the Government: The amount deducted shall be paid to the Central Government within ten days after the end of the month in which such deduction is made.

IS 194Q applicable on GST?

1) No GST Adjustment is required in the case of TCS as per section 206C(1H). 2) GST Adjustment is required in the case of TDS as per section 194Q if it is separately shown in the invoice. 3) GST Adjustment is not required in the case of TDS as per section 194Q if it is the buyer making advance payment to the seller.

What is difference between 194Q and 206C?

This TDS section 194Q is very similar to TCS section 206C(1H). However both these sections are mutually exclusive i.e. if one section becomes applicable the other will not apply. As per section 206C(1H), TCS will not be applicable if buyer is liable to deduct TDS under any other provisions of the Act.

What if TDS is not deducted on sale of property?

The penalty of not paying TDS on immovable property can be up to Rs. 1 lakh under Section 271H. To avoid penalty, you can pay the TDS, interest amount and late payment fee as soon as you receive a tax notice.

Is GST applicable on sale of fixed assets?

Supply terms include supply of regular of supply of goods or services or both and also include if fixed assets are sold. There is no such provision under the GST Law which excludes supply of fixed asset by the Composition Dealer from the regular supply being made by the Composition Dealer.

Can TDs be deducted on sale of property without GST component?

As per CBDT circular no.23/2017 dtd. 19th July 2017 TDS to be deducted on the amount payable without including the GST component. So, in your case TDS on sale of property to be deducted at the rate of 1\% excluding GST component under section 194-IA if the value of property exceeds Rs.50Lakh.

What is TDs on sale of immovable property?

As per provisions contain in sec 194-IA of Income Tax Act, if any buyer responsible for paying to a resident seller any amount exceeding or equal to Rs. 50 Lakhs for sale of immovable property other than agricultural land, then the buyer is required to deduct TDS @ 1\% of consideration for transfer of immovable property.

What is the treatment of GST on services in TDs?

After GST was implemented, CBDT received many queries on TDS on services and treatment of the GST component. CBDT has clarified through Circular No. 23/2017 that if GST on services has been indicated separately in the invoice, then no tax would be deducted on GST component. GST includes CGST, SGST, IGST, UTGST. What does it mean?

How to deduct TDs on sale of property under section 194-ia?

So, in your case TDS on sale of property to be deducted at the rate of 1\% excluding GST component under section 194-IA if the value of property exceeds Rs.50Lakh. Here are the requirements of section 194-IA: The buyer has to deduct TDS at 1\% of the total sale consideration. Note that the buyer is required to deduct TDS, not the seller.