Tds on purchase of immovable property fron non resident ?

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CA Abhishek Singh (Querist)
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15 May 2014 Hello everyone,

one of my client has purchased a residential house property from a non resident indian. (resident of canada)for Rs.1.50 crores.

since 194-IA is not applicable for deduction i am confused as to at what rate tax should be deducted and whether it is necessary to apply for TAN ?

waiting for the views of the experts.

CA Kedar Sakhardande

CA Kedar Sakhardande (Expert)
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15 May 2014 Hello

in case of your client section 195 is applicable (and not section 194IA)

You have to obtain TAN Number deduct tax at prescribed rate, file TDS Returns and once the transaction is complete you can surrender the TAN No

You are liable to deduct tax @ 20% (in case the seller produces low deduction or no deduction certificate , then you have to deduct tax at those rates or nil rate)

Regards

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