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Tds u/s 194ia

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Durgesh Keshri

CA Practice

24 Points Posted on 13 December 2014

As per Section 194ia TDS is required to be deducted on purchase of Property on value more than 50 Lacs. Now one company has purchased 3 Plots of same builder in same locality of 30 Lac each and made the single payment of 90 lacs by one cheque for purchase of these 3 plots.

MY QUESTION IS THAT WHETHER TDS IS REQUIRED TO BE DEDUCTED U/S 194IA AS THE VALUE OF SINGLE PLOTS IS LESS THAN 30 LACS BUT THE TOTAL PAYMENT EXCEEDS 50 LACS.

Replies (7)

CA Sayli Jain

104 Points Posted on 13 December 2014

as per my knowledge, no TDS is required to be deducted, because 3 properties are acquired and each of the property is less than 50 lacs..

Regards,

Sayli Jain

sayli12345 @ gmail.com

CA ANKUSH AGGARWAL

CHARTERED ACCOUNTANT

1800 Points Posted on 13 December 2014

I think TDS not required because all three properties are different and have it individual legal existence.So,all properties shall not be clubbed and tds shall not be deducted

THIRUVENKADAM R

Tax Consultant

22 Points Posted on 14 December 2014

If sale deed execute in single (both 3 plots) tds will be applicable. Each plot seperate sale deed not possible because payment made in single.

@CS Siddharth Bumb.

B.Com CA Final CS

3805 Points Posted on 14 December 2014

No TDS is required to be deducted as payment is made for 3 different properties.

MADHUSUDAN KUMAR PODDAR

CHARTERED ACCOUNTANT

32 Points Posted on 14 December 2014

50 lac limit is per property wise. The three plot shall count as three different property unless the three are clubbed together and only a single registration is made. Thus TDs shall not be applicable.