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
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
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- GST Rate for Catering Services
- RATE AND HSN CODE
- ITR 4 and Bank transactions
- Bank details not Visible on Traces Portal
- Taxability of Partnership firm for FY 2025-26
- Same demand raised for original as well as rectification request return
- Sale of property held jointly with a non resident Indian
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
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
