Hi this is a case from Bengaluru -
Note - In Karnataka registration of property happens post last disbursement and completion of property.
I have booked a under construction property - it will take 3 years to complete. I am going to start disbursement to builder this month, question is on TDS deduction. As a part of first disbursement I have to pay 10L . My builder is asking to pay complete 10L now and so on till last disbursement - then just before the registration he would assist me paying the TDS - For ex : Last disbursement ask is 10L and property value is 1Cr then 1% = 1L would be reduced from asked disbursement and I will pay 9L to builder and 1L as TDS.
Question - Is it ok to pay TDS at the end as against paying it per installment. Is there any such rule which allows paying at the end?
CAclubindia
