Tds on compensation
This query is : Resolved
19 January 2016
Hello Everyone,
My client has a real estate business, He received some advances from customers 2 years before, But now he is going to repay that advances along with some amount of compensation due to some problems, now my doubt is, Whether TDS will attract on compensation to customers ? If, yes please mention the section....
Thank you...
My client has a real estate business, He received some advances from customers 2 years before, But now he is going to repay that advances along with some amount of compensation due to some problems, now my doubt is, Whether TDS will attract on compensation to customers ? If, yes please mention the section....
Thank you...
19 January 2016
Compensation paid to customers is a capital receipt in the hands of the receiver being a booking party. If the amount cannot be termed as interest then, in my view, no TDS is required to be deducted.
Message likes :
1 times
19 January 2016
No Tds. further read section 2(28) which define interest.. interest" means interest payable in any manner in respect of any moneys borrowed or debt incurred. The money here was not taken as loan or debt or borrowing. A Compensation, moreover, which was not predetermined and pre agreed can not be termed as interest.
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
- Reporting Income under Section 44ADA
- Off Market debit and credit transaction
- Itr 1 processing
- Showing Gift from relative in ITR for this year
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR 1: Details for showing Exempt Income
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR 2 Short Term gain & Long term gain
- ITR returnFY25-26
- Short Term Capital gain on shares bought and sold after 2018 onwards
- TDS 194R on GST effected
- 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
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
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
