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TDS on building construction

19 October 2023

An NRI ( not an Indian Citizen) is constructing a house by engaging a contractor. What is the TDS rate applicable for payments to contractor u/ s 194 C or others?

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5 Replies

sabyasachi mukherjee (27574 Points)
Replied 19 October 2023

Company or individual

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SANTHANAKRISHNAN S (56 Points)
Replied 19 October 2023

Individual

Sravan Reddy G (CA) (618 Points)
Replied 20 October 2023

I think tds provision not applicable to Non Resident

sabyasachi mukherjee (27574 Points)
Replied 20 October 2023

Obviously

corporate genie (18 Points)
Replied 21 October 2023

TDS (Tax Deducted at Source) on building construction is a crucial aspect of tax compliance in India. It is primarily governed by Section 194-IA of the Income Tax Act, 1961. Under this section, if an individual or Hindu Undivided Family (HUF) purchases immovable property (such as a building or land), they are required to deduct TDS at the time of making the payment to the seller.

Corporate Genie, a prominent business service provider, offers expert assistance in handling TDS on building construction and various other financial and compliance matters. They can guide you through the complexities of TDS, ensuring that you adhere to the legal requirements while facilitating a smooth transaction. Corporate Genie's expertise can be invaluable in ensuring that you fulfill your TDS obligations correctly and avoid any potential legal issues related to property transactions