Query:
A Client has purchased property of Rs.3.60 crores. Its first installment is of Rs.20 lakhs and TDS is deducted @ 1% which is Rs.20000.
Can the client pay Rs.20000 of TDS before actual making the payment of installment of Rs.20 lakhs to the builder.
i.e. TDS is paid in the month of July-2021 and Rs.20 lakhs are paid subsequently in the month of Aug-2021 and Sep-2021 respectively.
Kindly guide.
In this case client has received the invoice from the builder to pay Rs.20 lakhs as installment.
Due date for paying the installment is 7th August 2021.
But client does not have sufficient funds to Pay Rs.20 lakhs
Can he discharge the TDS liability in advance to avoid interest and penalty and make the payment of Rs.20 lakhs later.
Kindly guide.
CAclubindia
