Dear Mohit
Let me share my knowledge with you that there is no online procedure for rectification u/s 194IA.
under this section if u have to recitify then u have to physically submit related documents to AO of Purchaser of Property.
Pls share further details about the case so i will help u.
rectification notice and default?
read section 194IA before reaching any conclusion
Rightly said by U S Sharma..please share more details so we will help u
@ CA vinay somani & U S Sharma
Thank you for your suggestions.
Yes my mistake It's Rectification Order instead of Rectification notice.
The client filed TDS return on purchase of new property.
He delayed in doing that. The amount stated in the order as peyable is Rs 4190 (186 as interest and 4000 as fee (200*20 days))
Is this notice to be considered as deemed notice us 156 or I should wait for the same?
As per my View this should be treated as Demand notice. because it is clearly mentioned in Section 156 of IT Act that where any sum is determined to be payable by assessee or deductor u/s 143 or us/ 200A, the intimation under those sections shall be deemded to be the notice of demand.
So in my view this order shall be treated as demand Notice u/s 156 and you should do the needful for the same.
and id you want to rectify the same. first you should paid the outstanding dues as stated in that order thereafter the authorityinitated the proceeding for rectification of statement u/s 154
I have heard that goverment did not have power to levy penalty u/s 234 E before 1/06/2015 .Should I file for rectification if any client gets penalty for TDS deducted before this date?
Hello all
Meanwhile I went through section 194IA it says:- Any person, being a transferee, responsible for paying (other than the person referred to in section 194LA) to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), shall, at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent of such sum as income-tax thereon.
It further defines immovable property as:-
immovable property" means any land (other than agricultural land) or any building or part of a building.
in case of under construction project there is no building . Is this section still applicable on projects under construction on periodic payments made ?
If the answer of above is yes,then what is the point where the transfer takes place
1 at the time of execution of BBA or
2 At the time of execution of registry?
so many silent and gray portions are there,
is the payee really eligible to deduct TDS? such as an individual who is not covered under audit for immediate preceeding year, can deduct TDS?
what is the status of the payee? if the payment is made in several years span, then when did it crossed threshold limit?
its a subject of debate,
but as the TDS is already deducted and deposited, above questions are meaningless, now only the question of fixation of time of crediting the TDS,
Dear Experts,
Today I recevied intimation notice u/s 200A. Here are my details
Date of property registration - 20th March 2014
Date of TDS filing (transaction) - 26 June 2014
Type of property - Underconstruction
Aggrement cost - 70L
TDS paid - 7L
Payment to builder on TDS date - 20L
My question is that TDS is against the payment we make to builder right? or is it against the agreement value?
If it is against aggrement value then in case of under construction property generally won't pay full agreement value.
I received 200A notice even after me paying TDS as per agreement value. Actual payment to builder as per agreement value is still not complete as construction is still going on
TDS shuold be paid as per agreement value u/s 194IA at the time of credit of such sum to the account of the transferor or at the time of payment of such sum, whichever is earlier.
Thanks Vinay for quick reply.
Can you please explain me what is exact difference?
"at the time of credit of such sum to the account of the transferor"
and
"at the time of payment of such sum"
My payment of the agreement amount (sum) is in stages as per schedule and disbursement from my home loan bank.
How IT expects TDS to be paid?
Credit means when yor make an entry in yoyr books for the said asset. and payment means when you make payment for the same.
which ever is earlier. tds should be deducted at that time.
CAclubindia
