TDS on Liquidated Damages
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 June 2011
A Developer has delayed in completing the development and is required to pay the Owner Liquidated Damages of 'X' amount on a monthly basis till such time the development is complete.
is the developer required to deduct TDS on the Liquidated damages payable to the owner?
How should the same be accounted in the books?
is the developer required to deduct TDS on the Liquidated damages payable to the owner?
How should the same be accounted in the books?
02 June 2011
Dear Sir
Deduction of Tax at soucrce u/s chapter XIIA of the income tax entails that if any person is responsible for paying any INCOME chargable as salaries, Income from Interest, Contractor Receipts, Professional receipts , roylaty etc than it is required that the TDS is ought to be deducted and depoisted as per the relevant provisons.
In the instant case of yours in my personal opinion and as per my knowledge of the Law I CAN SAY THAT THERE IS NO LIABILIY OF TDS ARISES ON SUCH PAYMENTS. BEACUSE IT IS NOT A PAYMENT IN THE FORM OF INCOME SPECIFIED U/S 192-195.
regds
aashish
Deduction of Tax at soucrce u/s chapter XIIA of the income tax entails that if any person is responsible for paying any INCOME chargable as salaries, Income from Interest, Contractor Receipts, Professional receipts , roylaty etc than it is required that the TDS is ought to be deducted and depoisted as per the relevant provisons.
In the instant case of yours in my personal opinion and as per my knowledge of the Law I CAN SAY THAT THERE IS NO LIABILIY OF TDS ARISES ON SUCH PAYMENTS. BEACUSE IT IS NOT A PAYMENT IN THE FORM OF INCOME SPECIFIED U/S 192-195.
regds
aashish
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