Tds obligation - third party buyer in a jda
This query is : Resolved
30 September 2017
Hi Everyone,
I have a doubt with regards to S. 194-IA.
My client is planning to buy a house property from the builder which is more than Rs. 50L. The builder is giving 2 contracts -
1. For the transfer of land which belongs to the landowner (as a part of JDA) and
2. For the construction of the flat
The builder says that TDS is required to be deducted only on the land value and no TDS on the construction value.
Is this correct? Will the construction amount to S. 194C rather than S. 194-IA?
I have a doubt with regards to S. 194-IA.
My client is planning to buy a house property from the builder which is more than Rs. 50L. The builder is giving 2 contracts -
1. For the transfer of land which belongs to the landowner (as a part of JDA) and
2. For the construction of the flat
The builder says that TDS is required to be deducted only on the land value and no TDS on the construction value.
Is this correct? Will the construction amount to S. 194C rather than S. 194-IA?
01 October 2017
This is not correct. For deduction under Sec 194IA, there is no concept of UDS or construction cost or underconstruction flat. The TDS needs to be deducted on the amount you are going to pay to the developer/builder for the flat as per the agreement.
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
- GSTR-1A How to update Invoice
- Excess salary payment.
- TDS on Purchase of Immovable Property by NRI from NRI
- Stamp Paper for partnership firm change new income tax 2025
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Value of property in capital gain
- Copyright software
- Regarding TDS Applicability For Director Remuneration
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
