Please help me on the below queries: 1) I entered into a purchase agreement that was registered in May 2013. Will I have to cut TDS on total amount or on each installment paid to seller?
2) Please check if my below understanding is correct? ....I have taken a Bank Loan for the property purchase, so if the amount to be paid to seller is Rs.1000 (assumed) and consequently TDS is Rs.10, the Bank will disburse Rs.1000 to me and I will pay the seller Rs.990 while retaining Rs.10, which I shall deposit to govt. by the 7th of the month following the month of payment to seller.
01 July 2013
Amount to be deducted is at the time of 'credit' or 'payment' which ever is earlier. Since you have credited the amount in the transferor's account, by virtue of the agreement, on 31 st May 2013, TDS provisions as per section 194-IA is not applicable to you.