26 October 2013
Dear Experts, I have a query about TDS on Immovable Property under Collaboration Agreement, which was done before 01/06/2013. Under this Agreement Builder (Company) will construct 4 floors for Individual person and incurred construction cost exactly 55 lacs. in lieu of that individual person agreed to transfer 1 floor in favour of builder. Now, Sale Deed for that particular floor is going to registered in favour of Builder. Will Individual Person deduct TDS @ 1% on 55 lacs, if yes, than what is the date of deducting TDS? Thanks in advance.
Tax shall be deducted at the time of payment or at the time of giving credit to the transferor, whichever is earlier. If advance payment is being made then TDS would be required to be deducted at the time of advance payment itself. And if installment payment is made, the TDS would be required to be deducted at each such installment. The tax deducted shall be paid to the credit of Central Government within a period of seven days from the end of the month of deduction.
Online payment u/s 194IA is mandatory and the tax should be deposited on challan-cum-statement on Form No.26QB. Form No 16B (TDS Certificate) will be issued by the deductor within fifteen days from the due date of depositing tax.
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