Tds u/s 194ia

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Mikdad Merchant (Querist)
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16 May 2013 I need to issue PDCs for purchase of a flat the price of which is higher than the limits prescribed u/s 194IA and the same are bearing dates after 1st june 2013 and the property will be registered after 1st june 2013, i buying this property directly from the builder and the same is under construction.

Questions:-
1. Is TDS u/s 194IA applicable even if the property is purchased under construction directly from the builder such that payments are linked to the stage of completion of the property.
2. Will i have to deduct TDS from each payment.
3. which challan to use for making payment to Govt. and is the due date 7th of the next month. How will the govt get details of such deduction is TDS return require to be filed, if yes how to file as TAN is not to be obtained.

Please provide guidance as i am very confused on this subject.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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04 July 2013 The provision of Section 194IA is reporduced below:

Section 194IA of Income tax Act 1961

At the time of credit of such sum to the account of the transferor or at the time of payment in whatever manner, has to deduct tax at source at 1 percent.

The liability to deduct tax at source is at the time of actual payment or credit of such sum to the account of the transferor whichever is earlier.

With effect from June 1, 2013, any person who acquires an immovable property (other than agricultural land) from a resident transferor and where the value of consideration Exceeds Rs 50 Lakhs, shall be required to deduct tax at source at the rate of 1 percent.

Yes you have to deduct the TDS @ 1% on each payment and to be paid in challan No. 281