Hi - I am an NRI and is on course to sell my apartment in Bangalore. I have been reading on Google that to avoid taxes on the sale, buyers/sellers also frame a Fittings & Fixtures agreement that would include movable and immovable fittings in the apartment - wardrobes, geysers, air conditioners, crockery unit, TV, Home Theatre, dining table, beds and mattresses, modular kitchen etc. This is permissible under Indian laws, the internet says. Wanted to check if this is correct and also if the buyer must pay any TDS on Fittings and Fixtures sale? Thank you.
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parties can enter into fixture and fittings agreement
Fittings could include items like free-standing furniture and appliances, kitchenware, pictures and hanging mirrors. Fixtures, though, would include integrated appliances, kitchen units and worktops, carpets, doors and bathroom suites, as well as the boiler and heating system.
The buyer need to deduct tax only for sale consideration of immovable property and not for purchase of used items I.e. the furniture and fixtures.
TDS is deductible only on consideration of immovable property which include all charges of the nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to transfer of the immovable property. Fittings and fixture’s are not immovable property within the purview of immovable property. No TDS is payable on sale of fittings and fixtures. Execution of any agreement for transfer of fittings and fixtures cannot help avoiding payment of TDS.
Yes in new furnishings tds is applicable.
it will still be considered as a sale consideration in the hands of the seller
and buyer has to deduct TDS on that amount as well
Dear Client,
TDS is applicable on new fixtures. Parties can enter into fixture and fittings agreement
Thank You.
