TDS claim in case of Promoter Builder Scheme

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This query is : Resolved

Tejas Sant (Querist)
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18 August 2022 A general query:

We are following %tage completion method in case of Promoter-Builder activity.

It so happens that the TDS is deducted by Flat owners as per their own dates (we do advise them to pay TDS at the time if booking but then it may or may not be paid then) Now while offering Sales we are offering sale as per our completion irrespective of TDS deducted or not.

Example
1) In a given year we are offering 50% of total sale value of say 3 flats of 1 cr each say 1.5cr.
2) TDS deducted in a given year is of only one flat of 1cr and balance two flats have not deducted TDS.
3) Now turnover as per 26AS is 1cr and as per books is 1.5cr which is OK and the ITR will be processed.
4) Issue arises in next year when the turnover as per books will be 1.5Cr but as per 26AS will be 2cr when the balance two flats will deducted TDS.

Any practical way out in this because we will surely get defective return notice for next year as T/O as per 26AS greater than T/O as per books.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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19 August 2022 There is nothing unusual. As the purchasers are going to deduct TDS as and when payment is made, and the same would reflect as receipts during the year in your financial statement. While the TDS should be claimed as per your work completion method, and balance may be carried forward to next ass. year.

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