Section 194ia

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nagaraja (Querist)
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21 June 2013 Dear Experts,
One of our client has a work contract with the builders for construction of registered office. There are 2 separate agreements for contract for sale and for construction. We are insisting the client to deduct TDS u/s 194C on service portion of works contract at 2%. Now with the introduction of Sec 194IA whether the client has to deduct TDS u/s 194IA at the time of registration/transfer on the full amount including construction amount or only on land value??

Whether we have to instruct our client not to deduct TDS u/s 194C??

Pls help me out...

CA Kapil Verma

CA Kapil Verma (Expert)
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21 June 2013 you query is not so clear.

please elaborate.

nagaraja

nagaraja (Querist)
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21 June 2013 Whether works contract for construction and sale of building attracts section 194IA or 194C?

CA Kapil Verma

CA Kapil Verma (Expert)
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21 June 2013 sir , how you can have both contract on same property?

if you are work contractor, that's means you are not owner for the property hence sec 194C will be levied.

if you are owner (Then how you can take work contract in your name?) section 194IA will be levied.

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