Tds on re-sale property. bought from seller but registration is done by builder. tds 1% on whom?

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Hi, I have purchased a re-sale flat from a seller(direct owner) in Dec-2018.Seller has made sale & construction agreement with builder during pre-launch in 2015 but didn't go for registration as he wanted to sell in future. I have paid 62 lakhs to the seller(22 lakhs in cheque, 40 lakh existing loan of seller closed with SBI) and made assignment agreement including both seller/builder

my registration is now complete with the builder and my sale deed is with builder's name. When i have contacted the builder regarding this query he checked with his CA and informed me that i should deposit on his company's PAN number. He informed me that he will pay back me the amount once he receives the return from the government(not sure if he will payback or not) I have below queries 1.My doubt is on whose PAN should i deposit the TDS 1% ? builder or seller? 2.Is it correct to deposit the TDS on builder even though i didn't pay him. BTW on the sale deed his company's PAN number is present.

Thanks, harsha

Replies (3)

Have you deducted TDS from your payments?

Whether the agreement of first seller with Builder been cancelled?

What are specific points regarding payments in your sale deed with builder, while payment made to first party?

No i havent deducted bcoz during the purchase i wasnt  aware at that time.

No, the sale & construction agreement b/w seller & builder was not cancelled but the original copy was with attached to my loan account & is now with SBI.

In the sale deed, builder has included clause to pay tds before required date but at that time i believed him & his CA i am afraid i may not get my money back if i deposit tds in builders pan.I dont know what do now? 

As you have paid 62 lakhs for purchase of the property, you are required to deduct TDS and pay it to treasury (sec. 194IA of IT act). As per clause of the agreement is it to be deposited in builder's PAN. Now as far as deduction or reimbursement is concern, builder should pay it back as he can get it back from ITD by filling ITR, but it should have been settled between all the three.

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