1.What is GST and its impact on real estate?

A, Goods and Services Tax (GST) is an indirect tax which was introduced in India on 1 July 2017 and is applicable throughout India which replaced multiple cascading taxes levied by the central and state governments earlier. Under GST, goods and services are taxed at the following rates, 0%, 5%, 12%, 18% and 28%. The effective GST rate on under- construction real estate projects will be 12% after one third abatement for land cost on 18%. However, GST would not be applicable on the units sold after availing completion certificate.

2.Is GST included in this price; am I eligible for input credit as per law?

A, GST would be payable additionally at the applicable rate on the total unit consideration as notified from time to time by the government. Input credit has already been applied for all buyers in the base price. The variable charges would attract GST at the notified rates which is 18% at present and is subject to change as per government directives.

3.Most developers including some projects of PS have advertisements that they are passing on the GST benefit?

A, We don't offer discounts on our projects. All our pricing are GST adjusted & realistic based on our product offering. PS is a partner in many projects with various developers and investors. However, not every project is managed, developed and sold by us. We are passive partners in such projects. The decision of discounting or offering special schemes in those projects is the prerogative of the lead developer in such projects.

4.What is TDS on property?

A, The Finance Bill 2013 has proposed that purchaser of an immovable property (other than rural agricultural land) worth ₹ 50 lakh or more is required to pay withholding tax at the rate of 1% from the consideration payable to a resident transferor.

5.I am a Buyer. Do I need to procure TAN to report the TDS on Property?

A, Buyer or Purchaser of the property is not required to procure Tax Deduction Account Number (TAN). The Buyer is required to quote his or her PAN and sellers PAN.

6.Who is responsible to deduct the TDS on sale of Property?

A, According to rules in respect of tax deducted at source, buyer of the property would have to deduct the TDS and deposit the same in Government treasury.

7.What is the due date of payment of TDS on sale of property?

A, As per the CBDT notification no. 30/2016 dated April 29, 2016, the due date of payment of TDS on transfer of immovable property has been extended to thirty days (from existing seven days) from the end of the month in which the deduction is made.

8.What if I don't have the PAN of the seller, is it Mandatory?

A, PAN of the seller is mandatory. The same may be acquired from the Seller before effecting the transaction.

9.What is Form 26QB?

A, The online form available on the TIN website for furnishing information regarding TDS on property is termed as Form 26QB

10.What is Form 16B?

A, Form 16B is the TDS certificate to be issued by the deductor (Buyer of property) to the deductee (Seller of property) in respect of the taxes deducted and deposited into the Government Account.