Sec. 194ia

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

24 April 2015 One of my client has made agreement to sale of Office in Dec. 2014 for purchase of the same for Rs.49.50 lacs
Now he wants to register his office by registered purchase deed, but now govt. value is coming to Rs.55 lacs.

So, he wants to know whether he will have any adverse implication, if he make purchase deed for the amount they have agreed in agreement to sale (i.e. Rs.49.50lacs) and pay full stamp duty on the govt. value (i.e. Rs.55lacs).

And if no adverse effect for him them whether he has to deduct TDS u/s. 194IA instead of actual purchase value of Rs.49.50 lacs paid by him.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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24 April 2015 1.He is not required to deduct TDS U/s 194-IA because The TDS liability is on the basis of amount paid /payable.
2. However, the difference of Rs 5.50 lac (55.00-49.50) will be taxable U/s 56(2)(vii)(b) w.e.f. AY 2014-15.
.
In such a situation paying the full govt. value will be more beneficial.
.

Querist : Anonymous

Querist : Anonymous (Querist)

24 April 2015 Thanks sir.

Rs.5.50 lacs taxable in the hands of seller or purchaser???

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