Tds u/s. 194ia

RAMAN (TAX CONSULTANT) (21 Points)

10 July 2017  
I've paid the cost of UDS value Rs. 28 Lakhs as per the UDS Registration Documents. And paid some part payments for the construction works as per the Construction Agreement executed for Rs. 75 Lakhs (Rs. 75 Lakhs is inclusive of Service Tax & VAT for construction works). I did not deduct TDS u/s. 194IA for UDS payment as well as Construction payment also. But, the builder is instructing me to deduct TDS on Total Value Rs. 1.03 Crores @ 1% u/s. 194IA. Is it correct or not? Please note that this is not a single house, apartment.