I have query pertaining to applicability of provision of section 194IA wherein advance consideration for the property amounting Rs. 74 lakhs out of total Rs. 110 lakhs has been paid before June 01, 2013. I want to know whether provisions of section 194IA will be applicable to the same. Further will also request you to please confirm whether answer of the above mentioned question will change in case of more than 1 trasferors/transferee.
18 March 2014
According to me it would not apply as per section its states that the value of property must me more then 50 lacs, payment or credit which ever is earlier. In your case advance payment of 74 lacs is already been made before the application of this section, as per my suggestion deduction of 1% tds should be made on the balancing amount as the payment was made before the documentation was done. If there are more than one transferor or transfree there wont be any change in answer. Only thing is to be considered is you should pay TDS 50%
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