Tds u/s 194ia @ 1% clarification

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 November 2013 Dear Sir,

Please clarify following points regarding 194 IA on Sale Agreement Rs. 50 lacs or more:
1. Whether TDS will be deducted if Sale Agreement is made before 1st June,2013, but consideration received after 1st june exceeds limit of Rs. 50 Lacs.
2. Whether TDS will be deducted if Sale Agreement is made before 1st June,2013 exceeds Rs. 50Lacs, but consideration received after 1st june is under Rs. 50 Lacs.
3. Whether TDS will be deducted if Sale Agreement is made after 1st june ,2013 , but Consideration Rs. 50,00,000 /- or more received before 1st june,2013.

Also clarify Sale agreement means, as Sale Agreement & registry differs in this industry.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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14 November 2013 Person responsible for paying the sum has to deduct the TDS. So while reading the query I have replaced the word "received" with "paid" and accordingly...the reply is-
.
1. Yes-as the transfer takes place after 1.6.12.

2. Yes. Here the overall consideration for
the subjected property exceeds 50.00lac.
.
3. No. As the amount has been credited to the payee earlier .
.
Sale agreement supported with possession is treated as transfer and is equivalent to the situation after registry. Registration is treated merely as a pending formality, in such cases.
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In case possession of the property has been given later after the sale agreement, then the date of possession matters and it will be the date of transfer.
.

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