Tds on purchase of property

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ravish agrawal (Querist)

01 April 2014 There is a property valued Rs. 1 Crore was purchase for which, Agreement was made on 15 July 2013. Against this, some paymnet was made before the date of agreement i.e. in January 2013.
Now Payment was made to party without deducting TDS. Whether there is a Liability under sec. 194 IA for deducting TDS

CA Deven

CA Deven (Expert)

01 April 2014 YES YOU NEED TO DEDUCT TDS AT 1% SINCE CONSIDERATION IS IN EXCESS OF RS. 50,00,000/-. RAISE A DEBIT NOTE AND COLLECT THE SAME FROM HIM.

ravish agrawal

ravish agrawal (Querist)

01 April 2014 Interest Liability arises from when Jan or July

CA Deven

CA Deven (Expert)

01 April 2014 FROM 1ST PAYMENT ONWARDS.

VISHNU PRASAD GHUWALEWALA

VISHNU PRASAD GHUWALEWALA (Expert)

01 April 2014 I AM SURE YOU ARE CONFUSING SALE DEED WITH AGREEMENT TO SALE. NOBODY WILL MAKE THE PAYMENT WITHOUT AGREEMENT TO SALE. SINCE PAYMENT WAS MADE IN JAN. 2013, AGREEMENT TO SALE MUST HAVE BEEN DRAWN BEFORE THAT.IF SO THE PURCHASE WILL NOT COME UNDER THE PER VIEW OF THIS SECTION AS THE SECTION IS APPLICABLE FROM 1.6.213.IF ,IN REALITY ADVANCE PAYMENT HAS BEEN MADE AND AGREEMENT TO SALE DRAWN AFTER 1.6.2013 AND YOU HAVE NOT DEDUCTED THE TAX AND THE SELLER REFUSES TO BITE THE BULLET YOU WILL HAVE TO DEPOSIT TDS WITH INTEREST AND PENALTY.

VISHNU PRASAD GHUWALEWALA

VISHNU PRASAD GHUWALEWALA (Expert)

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