Tds on purchase of immovable property fron non resident ?
This query is : Resolved
CA Abhishek Singh
(Querist)
15 May 2014
Hello everyone,
one of my client has purchased a residential house property from a non resident indian. (resident of canada)for Rs.1.50 crores.
since 194-IA is not applicable for deduction i am confused as to at what rate tax should be deducted and whether it is necessary to apply for TAN ?
waiting for the views of the experts.
one of my client has purchased a residential house property from a non resident indian. (resident of canada)for Rs.1.50 crores.
since 194-IA is not applicable for deduction i am confused as to at what rate tax should be deducted and whether it is necessary to apply for TAN ?
waiting for the views of the experts.
CA Kedar Sakhardande
(Expert)
15 May 2014
Hello
in case of your client section 195 is applicable (and not section 194IA)
You have to obtain TAN Number deduct tax at prescribed rate, file TDS Returns and once the transaction is complete you can surrender the TAN No
You are liable to deduct tax @ 20% (in case the seller produces low deduction or no deduction certificate , then you have to deduct tax at those rates or nil rate)
Regards
in case of your client section 195 is applicable (and not section 194IA)
You have to obtain TAN Number deduct tax at prescribed rate, file TDS Returns and once the transaction is complete you can surrender the TAN No
You are liable to deduct tax @ 20% (in case the seller produces low deduction or no deduction certificate , then you have to deduct tax at those rates or nil rate)
Regards
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15 May 2014
he must invoke section 195 as all the transaction with nri is dealt here except for salary.
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