One of my clint has purchased a commercial land from NRI . Nri has gained 20 crores in this transaction. Does any liability to deduct tax attarcted on my clint.
9 Replies
valji
(Accounts manager-MBA)
(2150 Points)
Replied 26 August 2011
it is better to deduct TDS while dealing with NRI
sanju
(Accountant)
(348 Points)
Replied 26 August 2011
as per iam cinsidered you need to collect tds
CMA R. SIVAKUMAR M.Com, FCMA
(CMA Practice )
(21 Points)
Replied 29 August 2011
Yes deduct TDS for safer side, i am also agree with Valji statement
Regards
R. SIVAKUMAR
CA FINAL
CA Krishna Chaitanya M
(Chartered Accountant)
(463 Points)
Replied 29 August 2011
i think tds is for revenue expenditure only, purchase of land is capital expenditure, so tds is not applicable.
CA Krishna Chaitanya M
(Chartered Accountant)
(463 Points)
Replied 29 August 2011
there is no tds provisions for capital expenditure.
Manika Venkata Siva Prasad
(IPCC-student)
(84 Points)
Replied 29 August 2011
As per NRI point of you, he should come under tax liability, it may long term capital gain or short term capital gain, whatever it may be, he should come under tax liability, so TDS is applicable.
If anyone is expert in it, plz Correct me if am wrong,
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