Tds on auction of immovable property under sarfaesi act

sandeep kumar (Querist) 07 October 2015 This query is : Resolved
Hi,

i have a confusion on sectio 194IA of Income Tax Act. whether TDS shall be deducted by auction purchaser on purchase of property worth 1 crore auctioned under SARFAESI ACT by Bank.If it is deducted then in whose PAN it would be shown- in Bank or auction purchaser.
Please suggest
thank in advance

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Anirudh (Expert) 08 October 2015
The Tax is payable by the Bank (in fact by the owner of the property).
The consideration for the property is payabable by you to the Bank.
After effecting 1% TDS, you will make 99% payment to the Bank.
The bank (i.e. the owner of the property) has to subsequently claim credit of the 1% TDS made by you.
Therefore, 1% TDS is to be accounted for against BANK's (the owner of the property's) PAN No. and certainly not in the PAN No. of the auction purchaser.
You also get clarification in writing from the bank.

Guest (Expert) 08 October 2015
Consult the CA Club of this Same forum.Only the Professional Chartered Accountants Could Provide you the Practical Reply.Do Not be Mislead.