For TDS u/s 194IA consideration to include charges for all amenities
Section 194-IA of the Act relates to payment on transfer of certain immovable property other than agricultural land and provides for levy of TDS at the rate of one per cent. on the amount of consideration paid or credited for transfer of such property.
However, the term ‘consideration for immovable property’ is presently not defined for the purposes of this section.
The transaction involving purchase of immovable property, there are several other types of payments apart from the sales consideration which the buyer is contractually bound to make such payments to the builder/seller, either under the same agreement or under a different agreement.
Some of such payments are those for rights to amenities like club membership fee, car parking fee, electricity and water facility fees, maintenance fee, advance fee etc.
The Union Budget 2019-20 has proposed to amend the Explanation to Section 194IA to provide that the term “consideration for immovable property” shall include all charges of the nature of club membership fee, car parking fee, electricity and water facility fees, maintenance fee, advance fee or any other charges of similar nature, which are incidental
to transfer of the immovable property.
This amendment will take effect from 1st September, 2019.
----------- Similar Posts: -----------High Court quashed reopening of assessment on the incorrect presumption that no return of income had been filed Re-assessment order…
In absence of mala fide intention bank should not be treated as assessee in default for late deduction and deposit…
Whether bank account was fraudulently open in the name of assessee is question of fact. High Court declined to entertain…
SBI Concurrent Auditor Empanelment of Chartered Accountant Firms for FY 2024-25 SBI Concurrent Auditor Empanelment of CA Firms for FY…
Change in the constitution of Appellate Authority for CAs CSs and Cost Accountants In 2015, the Ministry of Corporate Affairs…
Trade Tax Department was unjustified in retaining refund beyond stipulated period and adjusting it against default notices issued subsequently. In…