TDS on transfer of immovable properties

[former_member605388]

Hi, 

From June 1st 2013 there is change in TDS on transfer of immovable properties. Please suggest how we can handle this or any SAP note for the same.

Consequent to the requirement  of compliance  of the formality of deducting tax at source on real estate purchase the tax payers would be  required to obtain TAN (Tax  Deduction Account Number) Number  and also perhaps  would be required to file the yearly TDS return.  Hence, every person after 1st June, 2013 would have to deduct TDS @ 1 % on payments made to the transferor for real estate.  In case the property  in excess of Rs.50 Lakhs is purchased then such TDS would be required  to be deducted at every part  payment of  consideration which would cause great harassment specially  to investors who are not engaged in day to day business activities.

Thanks,

Vishal Pant

[vinod_vemuru2]

Hi,

I was surprised to see this question. As an individual, recently I paid TDS as per this new law

SAP has released couple of OSS notes. Please check below notes.

1882121

Not directly related.

1890665

1872277

I suggest to contact SAP for complete solution.

Thanks,

Vinod.

[former_member605388]

Thanks for notes

Today I was mapping this in Dev system via Ext. withholding but Section code accept 4 digit only can I use Z194 or any better u suggest.

Thanks,

Vishal Pant

[vinod_vemuru2]

Hi,

Section code is a 4 digit field. So, you can define the name as per the naming conventions followed in your project. Also, it need not start with Z. So, you can define like 194I as well

Thanks,

Vinod.