Hi,
As per Sec 194IA, TDS @ 1% is to be deducted and paid into the credit of Central Government by the purchaser of the property whose registered value exeeds 50 Lakhs, and only agricultural lands and properties whose value is less than 50 Lakhs are exempt from the perview of this section.
Hence, in your case it is mandatory to deduct TDS, pay the same to the Govt.
For me agreement value was 64,44000/- and I have made 100% payment to builder instead of 99%, since I remember when booked this property, as per initial commitment we will pay 100% to him and he will deposit 1% into government account.
Now I that case its builders responsibility to deposit 1 % to government account. let me know if this correct.
As per the provisions it is the obligation of the buyer to deduct and pay the TDS to the credit of central government, Hence you cannot shift your obligation on to the builder.
Eighther you recover 1% from the builder or you bear it in your hands.
CAclubindia
