Customer's Guide


What are Statutory Payments?

1. MVAT is applicable on all residential apartments sold after 1st April, 2010 at the rate of 1% of the Market Value of the property or Agreement Value, whichever is higher.

2. Service tax for Bundled Services (construction service + preference location) provided @ 3.09% / 3.708% (as applicable) of the Agreement Value (conditions apply).

Service tax on Society , club, Extra Work, Modification etc Charges @ 12.36% would additionally apply.

3. TDS on Purchase of Immovable Property - Section 194-IA wef 1st June, 2013-
3.1 Person responsible for tax deduction :-Any person responsible for paying any sum to a resident transferor by way of consideration for transfer of an immovable property (other than agricultural land in rural area) is liable to deduct tax at source u/s 194-IA.
3.2 Time of deduction :- At the time of payment or credit, whichever is earlier.
3.3. Rate of TDS :- TDS to be deducted @ 1% of the sum paid. However, TDS needs to be deducted @ 20%, if the deductee does not furnish PAN.
3.4. Threshold Limit :-No tax is deductible where the consideration paid or payable for the transfer of an immovable property is less than Rs. 50,00,000/-.
3.5. Other points:-

  • Provisions of TAN as prescribed u/s 203A shall not apply in respect of tax deducted u/s 194-IA.
  • Immovable property means any land, building or part of building. Such property may be situated in India or outside India.
  • TDS provisions of section 194-IA shall apply only if the transferor is resident in India.
  • TDS provisions of section 194-IA shall not apply if a person acquires rural agricultural land in India.