kiran jhamnani (Finance Professional) (119 Points)
27 December 2013A property worth 58 Lakhs has been sold. TDS was supposed to deduct at source from buyer while makeing the payment due to the transaction is more than 50 Lakhs.
What if the buyer did not deduct the tax and paid full amount to seller.
In this case, buyer if not paying the TDS
Will the seller get the notice to pay the TDS?
Or
The buyer will get the notice to pay this Tax
Who has responsiblity to pay the TDS the buyer or the seller?
Mihir
(Wealth Manager)
(5293 Points)
Replied 27 December 2013
The buyer is supposed to deduct TDS from the payment made to the seller. It is not a bad idea to now make the buyer pay the TDS, and he may recover the amount from the seller.
kiran jhamnani
(Finance Professional)
(119 Points)
Replied 27 December 2013
Here I repeat my question, if a property transaction of Rs 58-Lakhs, buyer made the full payment and not deducted the TDS at source and deal closed.
But the TDS still remain unsloved. Who is liable to answer the TDS payment ? The buyer the seller after this deal. I am asking the future liability. The buyer will be in question why has he not deducted and made the payment. So the seller must pay the TDS now
Mihir
(Wealth Manager)
(5293 Points)
Replied 27 December 2013
TDS is to be deducted from the sale consideration made to the seller by the buyer. If the seller is to receive 1000, the buyer will deduct 1% and pay only 990, and the balance 10 will be deposited in the bank. If the buyer has not deducted, then he may deposit 10 and recover 10 from the seller. TDS is to be deducted and deposited by the buyer, and then give form 16B to the seller. It is in the interest of the seller to receive form 16B to avail tax credit in the IT returns.
kiran jhamnani
(Finance Professional)
(119 Points)
Replied 27 December 2013
In this case there is understanding that seller will not pay any thing. In case the buyer says now that is will pay and later not paid the TDS for the property transaction which above 50Lakh, then is this liability will automaticall shifted to seller ?
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