TDS U/s 194IA in case of exchange of property

Yes - TDS under 194IA will be applicable

1. If you go by sec 194-IA the exact wordings are "any sum payable 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 the issue of cheque or draft or any other mode, whichever is earlier" 
2. From the above reading, we can conclude that TDS u/s 194IA applicable in case of payment by any mode (cash, cheque or other) and it does not include when no such payments are made. 
3. From the above provision, we can say TDS u/s  194IA is applicable only when payment happens but in this case, it is only exchanged and no payment takes place in the above transaction. However TDS u/s 194IA is only for the purpose of tracking the sale of a capital asset, in that way it could be argued that TDS should be deducted on the same. There is no case law supporting the above argument. 
4. The provision does not demand the payer to deduct TDS u/s 194IA in case of an exchange of property. 
Please correct me if the above solution has an alternative view. 

@ Mkhanelwal
As a professional what is your judgement sir ?

As per 194IA section wording "...any sum payable at the time of credit of such sum to the account of the transferor..." it is clear that in accounting

a) you have to first credit the seller A/c and Debit New Property A/c.

b) You have to then Debit the seller and credit old property A/c

So the Section 194IA demands TDS deduction by both respectively.