Section 194ia

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chaitanya sharma (Querist)
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19 August 2014 U/s 194IA if there was sale of property, than purchaser is liable to deduct TDS and pay net consideration to seller. Is it possible that, seller receive gross consideration against property from purchaser and pays TDS on behalf of purchaser to the government.....?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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19 August 2014 the ans is no as only the purchaser b4 making final payment to sellor and needs to file form 26qb which the seller cant do so

Nikhil Kaushik

Nikhil Kaushik (Expert)
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19 August 2014 Well Tushar is correct. However, a lot real estate developers, for sake of convenience, are requesting clients to make gross payments and then deposit TDS on payer's behalf to the govt. This is specially true in Tier-II and Tier-III cities.

chaitanya sharma

chaitanya sharma (Querist)
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19 August 2014 1. Thanks Tushar for your prompt reply.
2. Thanks NIKHIL for your prompt reply, can you tell me about Tier II and Tier III cities, as you mentioned in your reply. Is it legally permissible to this kind of transaction.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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19 August 2014 It is not about legal or illegal. Wat I meant was to give you an idea of what sort of business practices people are following in the cities where the buyers don't have very good access to internet etc.

Please note that for TDS purposes, there is no requirement that the TDS has to be paid out of payer's account only and on the date of payment to payee.

Even where the payee has paid the TDS on behalf of the payer, it would be legal. Payee is only complying on behalf of the payer. even CA firms often pay taxes and statutory charges on behalf of their clients and claim reimbursement for the same later on. That doesn't affect the compliance status of the client.

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chaitanya sharma

chaitanya sharma (Querist)
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19 August 2014 thank to all...thank you very much

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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19 August 2014 you are welcome friend......................

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