Tds on payment to nri seller

Shreevishnu Bhuktar (Social worker) (27 Points)

25 April 2019

TDS by property buyer for payment to NRI seller not deducted. What steps are required by buyer and what are impacts on the seller?

Buyer is resident of India.

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2 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195637 Points)
Replied 26 April 2019

If possible, pay the TDS amount with interest. Otherwise penalty may be imposed in future.

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CA Arun Tiwari (Partner) (6665 Points)
Replied 20 December 2019

This case cover under section 195 provisions that state the penalty that are:-

If withholding tax(TDS) is not being deducted or not submitted at time then u/s.40a(i), his allowances are canceled, deduction in the year of payments.
If the TDS is deducted by the payer, but not submitted within the time then interest @ 1.50 per month or part of the month (varying for different situations and nature of payments) from the date of deduction to date of deposit (Sec.201 (1A) is charged.
If the TDS is deducted by payer and is not paid then – Penalty equivalent to the TDS amount is charged under Sec.221.
TDS deducted short i.e. partial or a part of TDS is submitted and rest is withheld – Penalty faced is equivalent to difference between actual deductible and deducted amount Sec.271C i.e. not exceeding the amount of TDS