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Tds u/s. 194-ia - urgent

TDS 685 views 6 replies

I am individual. I bought a property worth of ` 2.5 Crore from a Indian company on 05.01.2013.

I have made some payments as under:-

20.01.2013 – ` 500000/-

15.03.2013 – ` 1000000/-

16.04.2013 – ` 1500000/-

Now the balance will be paid in the month of May, June, July & Aug’13.

I will register this property after paying full consideration.

Now please clarify my liability in light of New Provisions U/s 194 – IA inserted by FM in Finance bill 2013.

Thanks

Replies (6)

dear swohra,

 

firstly this provision is operative from 01.06.2013 pre-operational period transactions will not be covered. and you should have tan for deducting tds. if the seller also should have pan otherwise tds @ 20% should be deducted.

Thanks Ramnarayanji

Does it mean that buyer will deduct TDS on that part which will fall after 01.06.2013 or on the whole sum ?

And If buyer register the said property before 01.06.2013 than also should he deduct TDS after 01.06.2013 on whatever balance amount unpaid??

 

dear swohra,

it is better to deduct on entire amount of 2.5cr (i.e. while making payment of june deduct tds on payments already made till tune and for remaining payments at the time of it's payment)it will put you on safe side.

for your second query

if payment is made before june and propeorty registered in june there is no need to deduct tds

but if transaction continues as said in your case like payments are still pending it is better to deduct on entire value.

 

regards,

 

ram narayana agnihotram

Thanks for your valuable reply Ramnarayanji.

But sir some directive clarifications are must desired from the authorities.

TDS on Property should be deducted on the full amount...

 

The point to be taken into consideration in this case is not the date of payment by the date of transfer of property... In your case, as the property is being transferred after 01/03/2013, TDS on Property @ 1% should be applicable...

Nehaji I could not understand your reply.


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