TDS Applicable on Lease Hold Land Purchase
This query is : Resolved
10 February 2024
If we have purchase a Leasehold Land of Rs. 2,00,00,000/- from SIDCUL for setup a factory. and Lease Rent paid to the SIDCUL Authority in future.
TDS applicable or Not u/s 194IA on Leasehold Land Purchase of Rs. 2,00,00,000/-@1%.
Kindly confirm for TDS deduct or not on above transaction.
TDS applicable or Not u/s 194IA on Leasehold Land Purchase of Rs. 2,00,00,000/-@1%.
Kindly confirm for TDS deduct or not on above transaction.
11 February 2024
TDS not applicable.
It is possible to argue that lease premium paid for leasing land and/or building for long period (say 99 years) does not result in withholding tax liability u/s 194-IA. However, care must be taken to draft the agreement between the lessor and the lessee substantiating the intention of the parties to the contract. The ownership in substance, if retained with the lessor throughout the tenure of the lease clearly indicates that what is transferred is the rights of usage of land and/or building and not the asset itself.
It is possible to argue that lease premium paid for leasing land and/or building for long period (say 99 years) does not result in withholding tax liability u/s 194-IA. However, care must be taken to draft the agreement between the lessor and the lessee substantiating the intention of the parties to the contract. The ownership in substance, if retained with the lessor throughout the tenure of the lease clearly indicates that what is transferred is the rights of usage of land and/or building and not the asset itself.
17 February 2024
Thanks sir,
one more point is if Lease Rent not paid in future then TDS liability arise or not.
one more point is if Lease Rent not paid in future then TDS liability arise or not.
18 February 2024
Check with SIDCUL what has been done by other lease holders.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Off Market debit and credit transaction
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- Itr 1 processing
- Showing Gift from relative in ITR for this year
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- Short Term Capital gain on shares bought and sold after 2018 onwards
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Share accounting-->fifo - capital gain - period as per fifo?
- Income of an individual
- NRE Interest Income applicability
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Query regarding TDS on EPFO Higher Pension Arrears*
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
