Tds under 194ia

TDS 458 views 2 replies

Does Development Agreement attract U/S 194 1A ?

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194IA is attracted when there is sale and purchase of land or house property. in case of a development agreement, there is an agreement of sale of land against purchase of flats in the constructed property. so 194IA should be applicable.

It may or may not, we will have to read the agreement.If the agreement is made in such a way that possession is transferred to the builder then it will attract.I will be writing an article on developmental rights(collaboration agreements) within 2 weeks or so, if you have any point then let me know. It will be great if you have the agreement,in case you are yet to enter into agreement then have details of it as we will have to see it on case to case basis


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