Tds u/s 194 ia - tds on purchase of property
This query is : Resolved
19 April 2016
In respect of TDS u/s 194 IA , kindly clarify the following:
1. When is the tax to be deducted in case where on if the agreement is made (whether or not registered) and payment is made for next many years in installment upon demand from the seller? i.e whether credit would deemed to be given to the seller and TDS to be deducted there upon ?
2. What if the buyer fails to deduct TDS and in turn non payment to the government account as well?
3. Will the benefit of proviso to Section 201 (1) and 201 (1A) can be taken as shelter by the above buyer?
4. Since Tax is never deducted and thus not paid to government department, filling TDS return will still be applicable and thus late filling fees of RS.200 per day also be applicable?
5. What if the above happens because of a genuine absence of knowledge with regards to this provision?
1. When is the tax to be deducted in case where on if the agreement is made (whether or not registered) and payment is made for next many years in installment upon demand from the seller? i.e whether credit would deemed to be given to the seller and TDS to be deducted there upon ?
2. What if the buyer fails to deduct TDS and in turn non payment to the government account as well?
3. Will the benefit of proviso to Section 201 (1) and 201 (1A) can be taken as shelter by the above buyer?
4. Since Tax is never deducted and thus not paid to government department, filling TDS return will still be applicable and thus late filling fees of RS.200 per day also be applicable?
5. What if the above happens because of a genuine absence of knowledge with regards to this provision?
20 April 2016
TDS u/s 194IA shall be deducted at the time of credit of such sum to the account of the transferor or the time of payment of such sum, whichever is earlier. If payment is to be made upon demand from the seller in installment, liability of TDS will arise upon at the time of credit i.e demand made from seller or payment whichever is earlier.
In case where the TDS is not paid to the Govt. account by the due date then under section 201 of IT Act 1961 interest @ 18% pa will be levied and the deduct or (buyer of the property) is to be deemed as an assessee in default
In addition to above interests, a late fee of Rs. 200 per day u/s 234E will be levied subject to the amount of tax is to be levied for late filing of TDS statement i.e. form 26QB. If it is the genuine case of non payment, assessing officer upon application can waive this penalty if he is satisfied with the reason produced.
In case where the TDS is not paid to the Govt. account by the due date then under section 201 of IT Act 1961 interest @ 18% pa will be levied and the deduct or (buyer of the property) is to be deemed as an assessee in default
In addition to above interests, a late fee of Rs. 200 per day u/s 234E will be levied subject to the amount of tax is to be levied for late filing of TDS statement i.e. form 26QB. If it is the genuine case of non payment, assessing officer upon application can waive this penalty if he is satisfied with the reason produced.
02 May 2016
I think following article will be helpful to you:
http://taxguru.in/income-tax/notices-related-tds-immovable-property-purchase.html
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http://taxguru.in/income-tax/notices-related-tds-immovable-property-purchase.html
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