Sanjay Chitnis (Self) 24 July 2013

Sale consideration/tds to be mentioned in sale agreement

Hi,

In agreement for sale, we normally mention the advance amount paid and the corresponding cheque/draft number etc. Now as per the new IT rule, 1% TDS is mandatory to be deducted on transactions above certain value. Now, if Advance to be paid is 10L and thus TDS is 10,000 rupees, what value should be mentioned in the agreement for sale? The cheque would be for 9,90,000 only (advance paid - TDS).

S C

Reply Follow

2 Replies

Advocate Rohit (Advocate) 24 July 2013

In agreement you can mention that the advance amount of Rs.10,00,000/- to be paid subject to deduction of TDS @ 10% from the same and the balance amount of Rs. 9,90,000/- shall be paid by the purchaser to the seller. The buyer shall submit the TDS certificate of the same to the seller within a period of 45 days from the date of such deduction made.

Regards,

Advocate Rohit Dalmia

9324538481

Mumbai