Form 26A for Non deduction of TDS on purchase of immovable property

[Milan Agrawal]

Dear all,

Greetings,

I have a query, one of my client has purchased an immovable property valuing above Rs. 50 Lacs for which he paid the installments without deducting TDS. However, now his builder has sent him a calculation sheet containing amount of TDS along with interest for late payment and penalty u/s 234E for late filing of TDS return wherein total TDS is Rs. 20000.00 but penalty u/s 234E also comes to Rs. 20000.00 (i.e. maximum penalty limited to amount of TDS). 

Hence, my query is:

1. Can he give Form-26A for non deduction of TDS in this case?

2. Can he save the penalty u/s 234E for non filing of TDS Return because he is producing Form-26A and not filing the TDS return at all?

--

Regards,

CA Milan Agrawal

ACA, DISA, Certified Banks Concurrent Auditor, B.Com(H)

+919778459609

[S K Choudhary]

Mr Agrawal

 

So far I understood from your query - Your client is a buyer of property and was to deduct tax from payment to developers if payments are made after 31.05.2013. He failed to do so. In such case your client will be in default. How can the builder raise the demand is understandable to me.

--
forum4ca is a Google Group of eServe online for the benefit of CA and other professionals. It is especially meant for written discussion & circulate information within group members. The mail may contain such research/advice/opinion/information/fact provided by any member and are subject to the accuracy and of the description of facts.The forum4ca, do not claim that contains in mail/information obtained after reading as a complete and accurate disclosure of relevant facts. Further this Group’s Owner/Moderator/Member are not liable for any damages or costs suffered due to action/transaction based on information on this Group.
 
To join and/or to post to this group send email: foru...@googlegroups.com
To unsubscribe from this group, send email to:forum4ca+u...@googlegroups.com
For more options, visit this group at:http://groups.google.co.in/group/forum4ca or www.eserveonline.net

---
You received this message because you are subscribed to the Google Groups "forum4ca" group.
To unsubscribe from this group and stop receiving emails from it, send an email to forum4ca+u...@googlegroups.com.
For more options, visit https://groups.google.com/d/optout.

[Kirti Tulsyan]

Dear all,

Greetings,

I have a query, one of my client has purchased an immovable property valuing above Rs. 50 Lacs for which he paid the installments without deducting TDS. However, now his builder has sent him a calculation sheet containing amount of TDS along with interest for late payment and penalty u/s 234E for late filing of TDS return wherein total TDS is Rs. 20000.00 but penalty u/s 234E also comes to Rs. 20000.00 (i.e. maximum penalty limited to amount of TDS). 

Hence, my query is:

1. Can he give Form-26A for non deduction of TDS in this case?

2. Can he save the penalty u/s 234E for non filing of TDS Return because he is producing Form-26A and not filing the TDS return at all?

-- 

Regards,

CA Milan Agrawal

ACA, DISA, Certified Banks Concurrent Auditor, B.Com(H)

+919778459609

REPLY 

Dear Sir,

In my opinion the Builder does not have right to instruct if Buyer did not deduct the TDS and paid Full amount to him.. The Buyer is in default in this case.  The penalty under section 234E can be dropped if it is related to before 01.06.2015

 

WITH WARM REGARDS,
SANJAY FITKARIWALA
PROPRIETOR
SKF & ASSOCIATES
CHARTERED ACCOUNTANTS

Address:-

Office No-18, Ground Floor,

Radhamit CHS, Sector-18,

Plot No-33, Nerul (W),

Navi Mumbai-400-706

Tel. No. : (M) 09833469139

    (O) 022-32278000
Email: - skfass...@ymail.com

--

Best Regards, 
Kirti Tulsyan
B.Com.,ACA,CS

[Milan Agrawal]

Mr. Choudhary,

Thanks for your kind consideration over my query.

However, it has nowhere mentioned in my trailing mail that the builder has raised demand. He just gave a calculation sheet so that my client can deposit the TDS, interest & penalty which he did not deposited whereas he is liable to do so. So the builder is assisting him to comply with the TDS provisions and hence calculated the TDS figures for him and asked him to deposit it. Accordingly, he agreed to adjust the said TDS amount in the next installment.

[Prithwiraj Pal]

Dear Mr. Agarwal

As per my concern, 234E is not applicable for this case as there will be no submission of TDS return. your client is required to pay TDS by generating 26QB from tin-nsdl site and only interest is payable for delayed payment of TDS. As per my view the client should pay the TDS now and the department will send intimation for interest due and then pay the interest.

 

Thanks & Regards

CA PRITHWIRAJ PAL
098301 93594

[amrassgI]

Dear Friend

Normally the Registrar will not register the documents unless the TDS paid challan is produced before him. Pl check. The Registrars have been advised accordingly

Regards

G.S.Sarma

G.Subramania Sarma
LODHA & CO
Chartered Accountants
'GURU KIRPA NIWAS'

Ground Floor, Front Portion,

20/7, Lalithapuram Street,

[Opp. to Sree Goudiya Mutt]

Royapettah, Chennai - 600 014
Tel: 044-28131157

Mobile: 9840076251
http:/amrassg.blogspot.com